Borders delays 10-K filing

ANN ARBOR, Mich. Borders Group has announced that it is delaying the filing of its Annual Report on Form 10-K for fiscal year 2007, ended Feb. 2. The company said it expects to make the filing on or before April 17 after it has completed its evaluation of financing alternatives and can include finalized transactions in its 10-K filing.

The news that Borders is delaying the filing of its 10-K comes shortly after the company announced that it is looking into the possible sale of the company or certain divisions in order to maximize shareholder value. The company said it has retained J.P. Morgan Securities and Merrill Lynch as financial advisors.

In addition, the company announced that Borders Group has received a financing commitment from Pershing Square Capital Management on behalf of certain of its affiliated investment funds. Under the terms of the commitment, Pershing Square has made a commitment to lend $42.5 million to the company and an offer to purchase, at the company's discretion, certain of the company's international businesses pursuant to a $125 million backstop purchase commitment, in each case subject to the satisfaction of customary closing conditions.