A judge today gave Borders Group Inc. an extension on the timeline to complete lease negotiations and indicated that the company would get final approval to tap its line of bankruptcy financing after making some changes to the agreement, according to reports.

The "omnibus" hearing in the U.S. Bankruptcy Court's Southern District of New York was scheduled to address several items in the Ann Arbor-based book store chain's Chapter 11 bankruptcy reorganization case.

Borders had asked the court for an extension that would give the company more time to figure out whether to renegotiate, sublease or exit leases at its remaining stores. The court approved the company's request for 90 days in addition to the typical 120-day period, the Associated Press reported.

Approval of that request was a key requirement of the company's $505 million line of bankruptcy financing with GE Capital. That financing is crucial to Borders' cash flow.

Judge Martin Glenn reportedly said he would give Borders final approval to use the bankruptcy financing after the company makes a few changes to the agreement, including providing cash for unsecured creditors to analyze secured creditors' claims, according to a report by Bloomberg.

But Glenn also suggested that Borders' deal with GE Capital was expensive, which echoes previous assertions by publishers that supply books to Borders.

“When I look at the incremental cost of new money coming in, it’s pretty steep,” Glenn said, according to Bloomberg.

For Borders, the lease negotiation extension means the company can take more time to decide how to handle its remaining stores. The company had about 500 superstores and 140 small-format locations when it filed for Chapter 11 bankruptcy protection Feb. 16.

The firm is liquidating 200 of its superstores, including the store in Arborland Center on Washtenaw Avenue. The company is also expected to decide this week whether to close an additional 75 superstores.

On Friday, the company indicated that the additional closures may number 20 to 25 based on current negotiations, although that figure could change.

The company has also said it may want to take until Jan. 12, 2012, to make decisions on its remaining leases, a list that includes the flagship store on East Liberty Street in downtown Ann Arbor and the Lohr Road store in Pittsfield Township.

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.