LodgeNet begins pre-packaged bankruptcy

$60 million recapitalization continues as planned

LodgeNet Interactive started its pre-packaged Chapter 11 in New York on Monday, a move the company announced last month would be coming in conjunction with a $60 million cash injection by Miramax investor Colony Capital.

Its business — it’s a major video provider to hotels, among other things — will continue to operate normally. Lenders agreed to a multiyear extension of existing senior debt, and unsecured creditors will be paid in cash for any pre-petition claims at the conclusion of the restructuring process. Stockholders are the ones left holding the bag as usual, with the shares trading at a fraction of penny.

Co-CEOs Frank Elsenbast and James Naro said the recapitalization is advancing on schedule. “Thanks to the overwhelming support we’ve received from our lenders and suppliers, and with the solid commitment of Colony Capital and an expanded strategic partnership with DirecTV, we anticipate being able to complete this process on an expedited basis, and to emerge with the capacity to launch new and exciting products which will benefit both our hospitality and health-care customers.”

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More TV News from Variety