LodgeNet Files Chapter 11
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.