Creditors Sue Extended Stay Investor Over Ch. 11

Law360, New York (June 26, 2009, 12:00 AM EDT) -- Two Extended Stay Hotels LLC creditors have reportedly sued an investor who led the lodging chain's $8 billion acquisition, his company Lightstone Holdings LLC and others for allegedly planning to push Extended Stay into bankruptcy and take it over.

Line Trust Corp. Ltd. and Deuce Properties Ltd., which own $214 million of Extended Stay mezzanine debt, filed the suit in Supreme Court of the State of New York, seeking $314 million in compensation and damages from investor David Lichtenstein, Lightstone and others, Reuters reported Friday....
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