Judge: Unredeemed Borders Gift Cards Are Worthless
Filed by KOSU News in Business.
May 22, 2013
If you were hoping to cash in that Borders gift card for the latest Dan Brown novel — or at least hoping to get some cash for it — you’re too late.
A Manhattan federal judge on Wednesday ruled that the bankrupt and defunct book chain owes nothing to the roughly 17.7 million people who hold $210.5 million in unredeemed gift cards.
U.S. District Judge Andrew Carter says it would be unfair to Borders Group’s other creditors to let gift-card holders pursue recoveries, Reuters reports.
“To do so, Carter explained, could upset liquidation by Borders’ bankruptcy trustee that is already ‘substantially’ completed.
He also said card holders failed to prove they met all the requirements for an exception, including that unsecured creditors whose interests might be harmed had been notified about the litigation and given a chance to object.”
Reuters explains that the decision upholds an earlier, lower court ruling, dating from August of last year.
Borders filed Chapter 11 in February 2011 and closed for good seven months later, the news agency said. [Copyright 2013 NPR]