Extended Stay Trustee Bows Out After Feud Over Lender Suits

Law360, New York (July 6, 2012, 2:45 PM EDT) -- The liquidation trustee for bankrupt hotel chain Extended Stay Inc. on Thursday asked to be released from the case, after failing to resolve a disagreement with the company's unsecured creditors about whether to sue five mezzanine lenders who financed the 2007 buyout that eventually crippled the company.

Hobart Truesdell of Walker Truesdell Roth & Associates asked the court to appoint Finbarr O'Connor of Capstone Advisory Group LLC, Extended Stay's Chapter 11 plan administrator, as successor trustee, in a joint motion filed in New York bankruptcy court....
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