Blackstone Pays $10M To End $1B Extended Stay Buyout Suits

Law360, New York (June 20, 2013, 7:40 PM EDT) -- The Blackstone Group LP will pay $10 million to settle lawsuits seeking $1 billion for its role helping orchestrate a ruinous leveraged buyout of Extended Stay Inc. in 2007, the bankrupt hotel chain's litigation trust said Thursday.

Recent Second Circuit decisions had made it less likely that the trust could prevail on its $1 billion in claims accusing Blackstone and others of siphoning off billions of dollars from the hotel chain, prompting it to settle with Blackstone as well as Bank of America Corp. and Citigroup...
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