Najafti Cos. Chosen as Borders Stalking Horse at $215M

(Reuters) – Bankrupt bookstore chain Borders Group Inc (BGPIQ.PK) said it chose a media products firm owned by Najafi Companies as the “stalking horse” bidder for its assets, after an offer worth $215.1 million.

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Borders chooses Najafi firm as bidder
(Reuters) – Bankrupt bookstore chain Borders Group Inc (BGPIQ.PK) said it chose a media products firm owned by Najafi Companies as the “stalking horse” bidder for its assets, after an offer worth $215.1 million.
Borders said Direct Brands — a portfolio company of private equity firm Najafi — will also assume about $220 million of its liabilities.
Under the deal, Borders would operate as a wholly owned unit of Direct Brands, a direct-to-consumer distributor of DVDs, music and book club brands.
Borders filed for bankruptcy protection in February after years of falling sales made it impossible to manage its debt load.
A stalking horse is a bidder chosen by a bankrupt company from a pool of potential bidders to make the first bid for its assets. (Reporting by Mihir Dalal in Bangalore; Editing by Gary Hill)