Borders Group (NYSE:BGP) Plunges Again on Payment Delays

Borders Group, Inc. (NYSE:BGP) has again revealed its desperate plight, as they are again putting off paying not only vendors, but landlords and others they owe money to.

This isn't totally unexpected, as when GE Capital (NYSE:GE) offered a financial package to Borders, it came with strict requirements, which include preserving liquidity in order to qualify for it.

The package offered by GE Capital is $550 million, and if Borders doesn't end up qualifying for it, the next step would probably be seeking protection from its creditors through Chapter 11 bankruptcy.

If that were to happen, it would probably wipe out those holding common shares in the company.

Border closed Monday at $0.73, down $0.0089, or 14.01 percent.