Friday, March 12, 2010

Extended Stay Seeks to Exit Bankruptcy

Extended Stay Inc.'s senior lenders, who are owed more than $4 billion, will join Paulson & Co. and Centerbridge Partners to pump $450 million into the hotel chain and take it out of bankruptcy.

Extended Stay's proposed plan to exit bankruptcy protection, unveiled Friday in court papers, calls for Paulson and Centerbridge to invest $225 million into the struggling hotel operator for a 22.5% stake.

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