Extended stay exits bankruptcy amid sale of company
Extended Stay Inc., which last year filed the largest bankruptcy by a U.S. hotel owner, today exited Chapter 11 after its $3.93 billion sale to Centerbridge Partners LP, Paulson & Co. and Blackstone Group LP was completed. Extended Stay cut its debt burden by almost $5 billion in the bankruptcy process, the Spartanburg, South Carolina-based company said in a statement today. The acquisition by the Centerbridge-led group concluded after Starwood Capital Group, one of Extended Stay’s creditors, dropped its objection to the transaction in June. Starwood had opposed the sale after losing an auction for the hotelier in May.