ANN ARBOR, Mich. ( TheStreet) -- Borders Group ( BGP) said Sunday it will delay payments to vendors and landlords scheduled for the end of January as it moves to protect liquidity.
Borders said Sunday it is delaying payments to maintain liquidity while it refinances or restructures its existing credit facilities. The cash-strapped bookseller added that it "understands the impact of its decision," which some investors believe could include a filing for bankruptcy protection. Borders made the announcement on the heels of receiving a $550 million conditional commitment from GE Capital. As part of the agreement, the book retailer must shutter stores, and seek financing with other lenders, vendors and landlords. The conditions include Borders securing $175 million in credit from other lenders and $125 million of junior debt financing. >>Bull or Bear? Vote in Our Poll