The U.S. government's bankruptcy monitor is expected to ask a court Tuesday to authorize an investigation into the bankruptcy of hotel operator Extended Stay Inc.
The official, U.S. Trustee Diana Adams, filed a motion in July asking the court to appoint an examiner to investigate pre-bankruptcy deals between the company, its chief executive and senior lenders. Adams said "serious" fraud allegations involving the company's top management prompted the request.
The government is raising questions about a proposed restructuring plan that provides "critical protections and inducements" to Chief Executive David Lichtenstein, whose Lightstone Group bought the 680-hotel chain in 2007 for $8 billion
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