E-commerce appears on the final bankruptcy docket for Borders
December 21, 2011 12:29 PM
Just as the year is winding down, so is the bankruptcy case of Borders Group Inc., which was the nation’s second largest book store chain.
The flurry of final legal action by the U.S. Bankruptcy Court for the Southern District of New York also included some late e-commerce developments.
Yesterday in a final series of motions to officially close the bankruptcy and liquidation of Borders, parent of Borders Direct, No. 200 in the Internet Retailer Top 500, the court approved the sale of about 16,500 Protocol Version 4, or IPv4, addresses, to Cerner Corp., a health care information systems developer, for $786,432. IPv4 is the current Internet address system, which assigns a unique address to every Internet-connected device. The majority of the assets of Borders.com were acquired in September for $15.8 million by Barnes & Noble Inc. (No. 41).
The court also approved the sale of Borders’ share of the Kobo electronic book reader business, which after taxes and fees, could generate between $27 million and $34 million in cash to eventually be distributed among creditors, according to the company’s latest round of bankruptcy documents. Borders had about a 10% stake in Kobo, which was sold to Japan-based Rakuten Inc. for $315 million in November.
The final series of court approvals also included the resolution of several outstanding claims filed by various creditors, such as an insurance company and the state of Michigan. Borders filed for bankruptcy in February.