Extended Stay investment agreement hearing postponed indefinitely

By Caroline Salls

Pittsburgh, March 15 - Extended Stay Inc.'s hearing on approval of an investment and standby purchase agreement with Centerbridge Partners, LP and Paulson & Co. Inc. has been adjourned to a date to be determined, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The hearing was originally scheduled for March 16.

As previously reported, Extended Stay's official committee of unsecured creditors has objected to the investment agreement, arguing that the deal is opposed by essentially all of the company's creditors and does not maximize the value from the sale of Extended Stay's business.

The committee also asked the court to allow its financial adviser to solicit alternative plan of reorganization proposals.

Extended Stay, a New York-based owner and operator of mid-priced extended stay hotels, filed for bankruptcy on June 15, 2009. Its Chapter 11 case number is 09-13764.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.