Extended Stay Bankruptcy Trust Wants To Move LBO Suits

Law360, New York (August 3, 2011, 5:14 PM EDT) -- Prompted by a recent U.S. Supreme Court ruling, the bankruptcy trust for Extended Stay America Inc. on Friday sought to move to New York federal court its suits against Blackstone Group LP and lenders involved in the hotel chain’s ruinous $8 billion leveraged buyout.

The trust said that the uncertainty created by the U.S. Supreme Court ruling in Stern v. Marshall regarding the bankruptcy court’s constitutional authority to enter judgment on state law matters required removing the fraudulent transfer actions to an Article III court....
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