Barnes & Noble Wins Auction for Most of Borders Group's IP Assets

In a bankruptcy court notice filed Thursday evening, Borders Group, Inc. announced the winning bidders at Wednesday's auction for the bankrupt book seller's intellectual property assets.  According to the notice, Barnes & Noble, Inc. will acquire, pending court approval, most of Borders' IP assets for $13.9 million.  Other successful bidders (also pending court approval) identified in the court pleading are:

• Pearson Australia Group Pty Ltd, with a $450,000 bid for a license to Borders' marks for Australia and New Zealand
• Popular Holdings Limited, with a $100,000 bid for a license to Borders' marks for Singapore
• Berjaya Books SDN BHD, with an $825,000 bid for a license to Borders' marks for Malaysia
• Al Maya International Ltd., with a $500,000 bid for a license to Borders' marks for certain Persian Gulf Countries including the United Arab Emirates

Barnes & Noble Price Stock Chart by YCharts

Borders Group will seek court approval of the winning bids at a hearing on September 20th.  At the same hearing, Borders will also seek approval to pay a $150,000 break-up fee to stalking horse bidder PC Mall and may seek authority to reject four licenses:

• Brand License Agreement by and among Borders, Inc. (successor by merger to Borders Properties, Inc.), Borders (UK) Limited and Borders Books Ireland Limited, dated as of September 21, 2007
• Brand License Deed by and between Borders, Inc. (successor by merger to Borders Properties Inc.), Spine NewCo Pty Ltd. June 10, 2008
• Area Development and Operation Agreement dated as of April 18, 2006 by and between Borders International Services, Inc. and Al Maya International Ltd. (FZC)
• Area Development and Operation Agreement dated as of March 14, 2005 by and between Borders International Services, Inc. and Berjaya Books SDN BHD

For copies of major court filings from the Borders bankruptcy cases, please visit: http://www.chapter11cases.com/Borders-Group-Inc_c_22743.html