Extended Stay Floats $450M Investment Plan

Law360, New York (February 23, 2010, 3:05 PM EST) -- Bankrupt hotel chain Extended Stay Hotels LLC has filed a plan that, if approved, would include $225 million in equity and a $225 million backstopped rights offering from investors Centerbridge Partners LP and Paulson & Co. Inc.

Extended Stay, which specializes in long-term lodging options for business travelers, submitted the plan Friday in the U.S. Bankruptcy Court for the Southern District of New York along with a motion to enter an investment and standby purchase agreement.

The debtor said that after it filed for Chapter 11...
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