New York City -- A report by Reuters on Tuesday said that a group of landlords have filed objections in U.S. Bankruptcy Court in Manhattan, disputing the process by which Borders Group is attempting to auction itself out of bankruptcy.
According to the nearly 20 landlords that filed objections on Friday and Monday, the plan offers no information regarding which leases would be assumed by potential buyers of Borders’ assets.
Shopping center owner Glimcher Properties, based in Columbus, Ohio, said the plan leaves landlords “in the dark,” according to court papers and reported by Reuters.
The report also said that landlords are objecting to the amount of time allowed for objecting to the fates of leases.
The proposed process includes a July 19 auction for Borders' assets. If no initial bid is made by a Sunday deadline, however, the auction would most likely be canceled and private equity group Najafi Cos. would win by default with its "stalking horse" bid of $215 million in cash and $220 million in assumed liabilities.
Borders has made no comment on the proceedings, which will go before the court on Thursday morning.