The company is also negotiating with other potential investors about an alternative piece of juniordebt financing that would repay Borders's existing juniordebt, this person said.
Critics of the government's plan to reorganize Chrysler say it rewards juniordebt holders at the expense of senior secured creditors, some of which have agreed to take 30 cents on the dollar for their investment.
Kerzner tried for months prior to the mortgage's Sept. 9 due date to restructure the debt with Brookfield, which held a critical junior piece of the loan.