Extended Stay receives shorter-than-requested exclusivity extension

By Alice Popovici

New York, Oct. 8 - Extended Stay, Inc. received a shorter-than-requested extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan during a Thursday hearing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive plan-filing period will be extended to Feb. 1, 2010 from Oct. 13 and the solicitation period to April 1, 2010 from Dec. 11. Extended Stay had originally asked the court to extend its exclusive periods to April 13 and June 11, respectively.

The shorter extension is the result of an agreement reached by the company, its special servicer and the creditors committee prior to the hearing, according to attorney Jacqueline Marcus with law firm Weil, Gotshal & Manges.

As previously reported, Extended Stay requested an extension because negotiations of its "complex debt structure" with its many stakeholders have been delayed and complicated by various litigations, and additional contingencies have to be resolved before going forward with plan negotiations.

Extended Stay, a New York-based owner and operator of mid-priced extended stay hotels, filed for bankruptcy on June 15. Its Chapter 11 case number is 09-13764.

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