Borders sets bidding procedures for lease, intellectual property sales

By Caroline Salls

Pittsburgh, July 28 - Borders Group, Inc. requested court approval of the bid procedures for the proposed sales of its unexpired non-residential real property leases and some of its intellectual property assets, according to Wednesday filings with the U.S. Bankruptcy Court for the Southern District of New York.

The unexpired leases will be sold either through assumption or entry into termination agreements with the landlords.

Bidding on the leases will have two rounds.

The first round will be comprised of bidding on Leases where either the company's time to assume or reject is Sept. 30 or earlier, or where "holiday protections" are triggered by that date.

The second round will be comprised of bidding on all other leases.

The bid deadline for the first round of leases will be 3 p.m. ET on Aug. 26, and the auction will be held on Aug. 31. Bids will be due by 3 p.m. ET on Sept. 7 for the second round of leases, and that auction will be held on Sept. 13.

Qualified bids for the leases must be equal to or greater than the sum of the cure amount plus $10,000, subject to the rights of lessor bidders to credit bid the cure amount portion.

The company is asking the court to hold the sale hearing for the first round of leases on Sept. 8 and the hearing on the second round on Sept. 20.

Meanwhile, the company is also looking to sell some of its intellectual property assets, including assets related to the borders.com web site.

Borders is seeking court approval to reimburse up to $250,000 of the expenses of any stalking horse bidder selected for the intellectual property assets.

The bid deadline for the intellectual property assets is 5 p.m. ET on Sept. 8. The auction will be held on Sept. 14.

Hearings on both sets of bid procedures are scheduled for Aug. 10.

Borders, an Ann Arbor, Mich.-based specialty retailer of books and other educational and entertainment items, filed for bankruptcy on Feb. 16. The Chapter 11 case number is 11-10614.

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