Friday, June 18, 2010

Starwood Plan For Extended Stay Gets Unsecured Creditors' Support

Extended Stay Inc.'s unsecured creditors are backing investor Starwood Capital Group's plan to take over the hotel chain, and they're seeking to end Extended Stay's exclusive control over its Chapter 11 case.

In court papers filed Tuesday, the committee representing the company's unsecured creditors said Extended Stay should lose its exclusive right to file a bankruptcy-exit plan so that creditors can consider Starwood's rival proposal to inject up to $700 million in cash into the company. Extended Stay is seeking to emerge from Chapter 11 with a $3.93 billion investment from Centerbridge Partners LP and other investors.

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