LodgeNet gets OK for pre-packaged plan, $20 million exit financing

By Lisa Kerner

Charlotte, N.C., March 5 - LodgeNet Interactive Corp.'s pre-packaged plan of reorganization was confirmed and its related disclosure statement approved, according to documents filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The court also approved LodgeNet's entrance into a March 4 commitment letter with Bank of America NA in which the bank will provide a $20 million senior revolving credit exit facility.

As previously reported, under the terms of the pre-packaged plan, LodgeNet's existing lenders will provide for a multi-year extension of its existing senior debt, and unsecured creditors will be paid in full in cash for any pre-bankruptcy claims.

Holders of the company's existing series B preferred stock and common stock will have their interests cancelled and will not receive any distributions.

On the plan effective date, reorganized LodgeNet Interactive will issue warrants to acquire new common stock to entities and in amounts determined by Col-L Acquisition, LLC for a purchase price of $5,000. Upon exercise, the stock purchased will represent 27.5% of the outstanding new common stock.

In addition, the purchasers or their representative's designees also may purchase any number of additional shares of new common stock at a price determined in the investment agreement, up to a total additional purchase price of $30 million.

LodgeNet is a Sioux Falls, S.D.-based provider of interactive media and connectivity services to hospitality and healthcare businesses. The Chapter 11 case number is 13-10238.

© 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.