LodgeNet, maker of interactive in-room entertainment systems for hotels, will file for bankruptcy under Chapter 11 and will reorganize with Colony Capital as the company’s majority stockholder.
Sioux Falls, S.D.-based LodgeNet will receive $60 million in funding from Colony Capital. LodgeNet also reached an agreement to work with DirecTV to further market LodgeNet services to hospitality and healthcare companies.
LodgeNet's interactive television, movie and video gaming systems are in more than 1.5 million hotel rooms.
Additionally, LodgeNet received a multiyear extension on $346 million in debt.
Colony Capital's hotel holdings include the Fairmont and Raffles hotel brands. Also, Colony is working with the Trump Organization at redeveloping the Old Post Office Building into a luxury hotel in Washington, D.C.
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Correction: The headline was corrected to show that LodgeNet will file for bankruptcy but hasn't done so yet.