Kasowitz Files Chapter 11 Petitions for Borders Group

Kasowitz Files Chapter 11 Petitions for Borders Group

On February 16, 2011, Kasowitz filed chapter 11 petitions for national bookseller Borders Group, Inc., and seven of its subsidiaries, in the United States Bankruptcy Court for the Southern District of New York.  Kasowitz filed more than 20 motions and applications on the company’s behalf, and Chief Judge Arthur Gonzalez entered orders approving Borders’ first-day motions, among them an order approving Borders’ proposed debtor-in-possession financing, which will provide the company with access to $400 million in financing for Borders’ reorganization.  On the first day of the case, Kasowitz held an auction to select a liquidator to conduct store closing sales at approximately one-third of the company’s stores, and then obtained Court approval to begin those sales immediately at the highly favorable price obtained at the auction.  Kasowitz partners Adam L. Shiff and Andrew K. Glenn represent Borders in this matter.  Law360 and Bloomberg are among the various publications to profile Kasowitz's involvement in the case.