Extended Stay Creditors Drop Bid To Sue Over Buyout

Law360, New York (August 11, 2010, 6:43 PM EDT) -- Creditors of Extended Stay Inc. have withdrawn their motion to sue investment firms Blackstone Group LP and Lightstone Group LLC over the 2007 sale of the now-bankrupt hotel chain.

The official committee of unsecured creditors in the bankruptcy filed notice in the U.S. Bankruptcy Court for the Southern District of New York that it was withdrawing its motion to prosecute actions against the firms without prejudice on Tuesday. It did not give any reason for the withdrawal.

Mark T. Power of Hahn & Hessen LLP, the...
To view the full article, register now.