LodgeNet filing for bankruptcy protectionDecember 31, 2012 @ 8:18 am
NEW YORK (AP) - LodgeNet Investment Corp. said Monday that it is filing for Chapter 11 bankruptcy protection and will be acquired by investment firm Colony Capital.
LodgeNet provides video, Internet and advertising services to the lodging and health care sectors. The company said that it will continue to operate during the expedited bankruptcy process. When that is complete, Colony will own LodgeNet.
LodgeNet says a Colony Capital affiliate will provide it with $60 million in new capital, and that funding will be used to support a recapitalization of the company. It also received commitments for up to $15 million in debt financing from creditors. LodgeNet, based in Sioux Falls, S.D., said its lenders will extend their credit agreements. The company said it has a secured credit facility worth about $346 million.
LodgeNet also said it will form a strategic partnership with DirecTV LLC in the hospitality and health care markets.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
This Is Reality
For Seattle's Jason and Molly Mesnick, life is a far cry from the glamour of the 'The Bachelor'
Taxi drivers are upset about unlicensed ride-sharing companies in Seattle like Lyft
DNA on Gatorade bottles helps bust Washington's biggest copper theft ever
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.