Earlier this year, the nation’s second largest bookstore chain filed for bankruptcy. After much negotiation, Borders was bought out by Barnes & Noble in a bankruptcy auction. Barnes & Noble stood to inherit all of the remaining Borders assets, including intellectual property such as customer information, if the proposal was approved by the court.
The court ruled that the remaining assets will be liquidated through a trust and the former shareholders will be left empty handed. In many business bankruptcy filings, shareholders can stake claim to some of the assets during the process. Borders shareholders were denied claim and the assets will, instead, be liquidated through the trust.
Meanwhile, creditors were given until December 9th to either accept or reject the Chapter 11 plan as proposed. Many of Borders assets have already been sold in efforts to resolve debt liabilities with creditors, but as Barnes & Noble moves forward with control over the remaining assets much debt resolution is still pending.