Fears that the Borders bookstore chain, American version, might follow the lead of Borders UK and go belly-up (see the earlier MobyLives reports here and here) were assuaged yesterday when the company’s largest single investor, William Ackman of Pershing Square Capital Management LP, said bankruptcy was “a low probability event” for the nation’s second largest bookseller, according to a Wall Street Journal report by Jennifer Cummings. Cummings says “Other investors echoed Ackman’s comments.”

Interestingly, Ackman did go on to say that Borders “may become part of an industry consolidation at some point, or it may survive as a standalone company,” but gave no further indication of what kind of “consolidation” he might be talking about. Meanwhile, on April 1, Borders “must repay a $42.5 million senior secured loan from Pershing Square, notes Cummings.

In any event, shares in Borders “jumped” as a result, says Cummings, closing up $0.36.