Riggio/Liberty Convert Debt to new BKS Equity in Chapter
Here is a possibility. Riggio runs BKS into bankruptcy intentionally. He then converts his $150MM remaining seller note that is hidden in other liabilities. Then he converts his note to equity along with Liberty converting its preferred during the bankruptcy. All of a sudden they own all the equity and a much stronger capital structure. Wouldn't put it past Riggio. He did a pure value transfer by selling B&N College to BKS. That was totally self dealing.
Maybe they will go through some song and dance now looking for a buyer for just the nook biz but I think they will come back saying there are no buyers willing to pay enough because the only way the nook works if it the store sells it. A "failed" strategic options review of a nook sale will give them some cover for when they go into chapter and try to get the whole company.