Hotel Chain Highland Hospitality Mulling Ch. 11

Law360, New York (August 18, 2010, 5:45 PM EDT) -- Private equity firm JER Partners is reportedly considering a bankruptcy filing for Highland Hospitality Corp. as the hotel chain struggles to service the $1.8 billion debt load used to purchase the company in 2007.

The 27-hotel chain has faltered under the downturn in the hotel industry and failed to pay about $868 million in junior debt due earlier in August, raising the possibility of a bankruptcy, the Wall Street Journal reported.

Representatives for JER Partners could not immediately be reached Wednesday to comment on the Journal...
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