Borders faces Thursday deadline on credit facility from Pershing Square

New York City Borders Group Inc., faces a deadline Thursday to repay a $42.5 million loan from its largest investor, William Ackman's investment firm Pershing Square, the Associated Press said.

Pershing Square holds an 18% stake in Borders.

Borders hasn't reported results for its fiscal fourth quarter, which ended Jan. 31. But it posted losses for each of the three previous quarters as its revenue fell. And it said in January that same-store holiday sales at Borders Superstores fell 14.6%. 

The credit facility's due date has been extended three times and could be extended again.

Borders said in a December regulatory filing that it had about $32.8 million in cash as of Oct. 31.

If Borders doesn't get another extension from Pershing Square and can't repay the $42.5 million or find financing from another source, it could sell a stake to another investor, according to the report.

Other options include filing for bankruptcy court protection, liquidating or selling itself whole, said analyst Michael Norris with Simba Information in the report.