Looks like there's a very slim chance that Borders can evade bankruptcy:

Borders just announced that they have a promise of $550m from GE credit. Their plan is to use this money to restructure and basically not have to go bankrupt. We already knew about this financing, but what we didn’t know was the conditions GE Capital attached. There are several conditions such as store closure, etc, but here’s the pass-fail point: In order to get this money, Borders have to convince vendors and creditors to change the $125 [million] in unpaid invoices into debt.

That's a huge caveat, because a lot of book gossip I'm hearing seems to indicate that the big publishers simply don't trust Borders to pay them back.