U.S. District Judge Andrew Carter ruled yesterday that Borders owes nothing to holders of roughly $210.5 million of gift cards that had not been used by the time the bookstore chain shut down, Reuters reported yesterday. Judge Carter said that it would be unfair to other creditors of the former Borders Group Inc. to let gift card holders pursue recoveries from the bankruptcy estate. To do so, Carter explained, could upset a liquidation by Borders' bankruptcy trustee that is already "substantially" completed. He also said that 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.
