Lightstone Hit With $100M Suit Over Hotel Bankruptcy

Law360, New York (November 10, 2010, 7:39 PM EST) -- The trustee for holders of Wachovia Bank mortgage-backed securities tied to a $4.1 billion loan to Lightstone Holdings LLC has sued the real estate company, alleging it owes $100 million that was guaranteed by the loan contract for its purchase of formerly bankrupt Extended Stay Hotels LLC.

The U.S. Bank National Association's complaint, filed Tuesday in the Supreme Court of the State of New York, New York County, seeks reimbursement for administrative costs on behalf of holders of the debt racked up by Lightstone in its...
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