Borders Down Sharply On Payment Delays (BGP)

Borders Group, Inc. BGP is down sharply in pre-market trading, losing 19% as the company has delayed payments to its vendors, as it seeks to refinance the company, writes the NY Post. Mary Davis, a spokeswoman at Borders, said the company was delaying vendor payments "as part of this potential refinancing." Davis went on say, "there can be no assurance that it will be successful in refinancing its senior credit facilities or restructuring its vendor financing arrangements." Borders, which has lost key market share to Amazon AMZN and Barnes & Noble BKS, recently received $1 billion from Bill Ackman to buy Barnes & Noble. At last check, shares of Borders were off 22 cents to 94 cents, a drop of nearly 19%.