Extended Stay Hotels has filed a reorganization plan, saying it intends to emerge from bankruptcy this June.
The plan calls for investment firms Centerbridge Partners and Paulson & Company to assume a 22.5% stake in the hotel company for $450 million.
It also calls for creditors holding $4.1 billion in Extended Stay's mortgage debt to receive new mortgage notes totaling $2.5 billion plus a 55% stake in the company.
Meanwhile, an examiner appointed by the U.S. Bankruptcy Court for the Southern District of New York has asked that his report on the company’s collapse remain sealed at least temporarily, while he deals with confidentiality issues.
The company filed Chapter 11 last summer, saying it was overleveraged after Lightstone bought the group of nearly 700 hotels near the peak of the market in 2007 from the Blackstone Group for $8 billion.
