Borders is the second largest book retailers in the U.S., after Barnes & Noble, but even so, Borders says "there can be no assurance" that these refinancing efforts will be successful in keeping the company afloat.
It isn't simply a downturn in the economy or in the publishing world that has put Borders in trouble. Unlike Barnes & Noble and Amazon, Borders has not built its own e-reader hardware. The company has partnered with Kobo, a spin-off of Canadian publishing company Indigo Books & Music, and offers a branded Borders e-bookstore and reader but only via the Kobo software and hardware.
If Borders does go belly up, the results could have a ripple effect on the e-book industry. Kobo would clearly suffer by losing its major partner, a shame as Kobo is one of the few supporters for open-formats for publishing. But there seems to be plenty of other companies - Apple and Amazon - that have the (DRM) e-books ready to deliver.