Extended Stay creditors withdraw exclusivity termination motion

By Caroline Salls

Pittsburgh, July 13 - Extended Stay Inc.'s official committee of unsecured creditors has withdrawn its motion for termination of the company's exclusive periods to file a plan of reorganization and solicit acceptances, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the creditors committee said it had been approached by affiliates of Starwood Capital Group Global LP regarding an alternative plan funding proposal.

The committee said the alternate proposal would provide "hundreds of millions of dollars" in additional value for Extended Stay's creditors, as well as a "meaningful distribution" to some of the creditors holding $3.3 billion mezzanine facilities claims.

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.

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