Extended Stay Picks $905M Starwood Investment

Law360, New York (March 18, 2010, 5:26 PM EDT) -- Turning away bids from other private equity firms, Extended Stay Hotels LLC has chosen a recapitalization plan that provides the bankrupt hotel chain with $905 million in funding and hands a controlling stake in the reorganized company to Starwood Capital Group.

Extended Stay urged Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York on Wednesday to approve the investment agreement put forward by a consortium of investors led by Starwood, deeming the offer far superior to a previous agreement...
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