Borders Hires Bankruptcy Law Firm

As news surfaced about Borders Group Inc. hiring a law firm to protect it from bankruptcy, the stock price fell as much as 17 percent earlier this week.  Shares were selling for 92 cents, down 14 cents from the previous closing amount of $1.06.

This came after a large spike in their stock a week before when the New York Times revealed that the company would possibly receive refinancing from GE and other financiers. The Wall Street Journal is weighing in on the topic by writing that, according to anonymous sources, Borders has chosen a practice to advise the firm on how to receive a $500 million credit line.

As the company continues its talks with its lenders and publishers on how to create a restructuring of its finances, the public's interest in this situation has caused the stocks to fluctuate dramatically. These are based around news of whether Borders will receive a line of credit or is worrying its publishers.

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