SIOUX FALLS, S.D. -- LodgeNet Interactive
Corporation (OTCBB: LNET) today announced that it has commenced a prepackaged
Chapter 11 process in the Southern District of New York in order to effect a
recapitalization in which a syndicate of investors led by Colony Capital will
invest $60 million in LodgeNet, all as previously announced.
Throughout this process, LodgeNet's business operations will continue in the
normal course, and current hospitality and healthcare customers will continue
to receive services without interruption.
Under the terms of the plan, LodgeNet's existing lenders will provide for a
multi-year extension of its existing senior debt and unsecured creditors of
LodgeNet will be paid in full in cash for any prepetition claims at the
conclusion of the restructuring process.
LodgeNet Interactive Corp.