Shares of Borders Group, Inc. (NYSE: BGP) were up more than 30 percent on Friday after it was reported that the troubled bookstore chain told publishers that it was close to securing refinancing that was intended to reduce costs, improve liquidity and expand marketing efforts.
Borders also asked publishers to provide money for a large portion of the company’s debt as a loan, according to people briefed on the matter, the New York Times reported.
Last week, sources told Reuters that the bookseller has hired FTI Consulting Inc to assist in analyzing its finances and is in talks with GE Capital about new debt that could replace its existing credit line.
It was also reported earlier this month that Borders said it was delaying payments to some of its vendors. According to the company’s latest financial statements, its biggest liability is its unpaid bills to suppliers, a figure which may have ballooned following the holiday selling season.
Shares of BPG closed at $1.06, up 29 percent from Thursday’s closing price. Shares are down 18 percent over teh past three months.