….or so it currently appears.
Pershing Square has agreed to a one year extension of the loan agreement.
From the press release:
ANN ARBOR, Mich., March 30 — Borders Group, Inc.and Pershing Square Capital Management, L.P. today announced a one-year extension of the $42.5 million senior secured term loan from April 15, 2009 until April 1, 2010. The loan will be extended on its current terms, including an interest rate of 9.8%, which is substantially below market for comparable financing. At the same time, Borders Group is resetting the strike price on Pershing Square’s 14.7 million warrants to $0.65 per share, and the company will allow its option to “put” its U.K. based Paperchase gifts and stationery business to Pershing Square to expire.
Could make next year’s April Fool’s Day interesting….