Borders’ Pershing Square Loan Coming Due

Mar 25 2010 | 11:37am ET

Pershing Square Capital Management could push bookseller Borders Group into bankruptcy as soon as next week.

The Ann Arbor, Mich.-based retailer faces an April 1 deadline to repay a $42.5 million loan to the hedge fund. New York-based Pershing Square has renegotiated that loan three times already, sparing Borders an earlier bankruptcy. It is unclear whether Pershing Square chief William Ackman is willing to do so again.

Pershing Square is Borders’ largest shareholder. Ackman said in February that he sees only a “low probability” of Borders filing for bankruptcy.

Should Ackman play hardball and demand repayment, Borders might default on at least part of the loan. The company had just $32.8 million in cash at the end of October, almost $10 million less than the principal of the loan.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.