LodgeNet Files Prepackaged Chapter 11 to Advance Recapitalization Process Led
by Colony Capital
Senior Debt Holders Vote In Favor Of Reorganization Plan
Existing Lenders To Provide $15 Million Of Debtor-in-Possession Financing
Company Expects To Complete Reorganization Within 60 Days
SIOUX FALLS, S.D., Jan. 28, 2013
SIOUX FALLS, S.D., Jan. 28, 2013 /PRNewswire/ --LodgeNet Interactive
Corporation (OTCBB: LNET) today announced that it has commenced a prepackaged
Chapter 11 process in the Southern District of New York in order to effect a
recapitalization in which a syndicate of investors led by Colony Capital will
invest $60 million in LodgeNet, all as previously announced.
Throughout this process, LodgeNet's business operations will continue in the
normal course, and current hospitality and healthcare customers will continue
to receive services without interruption.
Under the terms of the plan, LodgeNet's existing lenders will provide for a
multi-year extension of its existing senior debt and unsecured creditors of
LodgeNet will be paid in full in cash for any prepetition claims at the
conclusion of the restructuring process.
LodgeNet has secured overwhelming support from its lenders, having received
lenders' votes in excess of the amounts needed for the court to approve its
plan of reorganization.
"Our recapitalization is advancing on schedule," commented LodgeNet co-CEOs
Frank Elsenbast and James Naro. "Thanks to the overwhelming support we've
received from our lenders and suppliers, and with the solid commitment of
Colony Capital and an expanded strategic partnership with DIRECTV, we
anticipate being able to complete this process on an expedited basis, and to
emerge with the capacity to launch new and exciting products which will
benefit both our hospitality and healthcare customers."
The Company also negotiated a debtor-in-possession (DIP) facility from certain
of its existing lenders providing for up to $15 million in new financing
which, subject to the approval of the court, makes funds available to satisfy
the customary obligations of LodgeNet's business during the course of the
Pursuant to the contemplated plan of reorganization, holders of the existing
Series B Preferred Stock and common stock issued by LodgeNet Interactive will
have their interests cancelled and will not receive any distributions.
The Company expects to complete its restructuring within 60 days.
Additional information can be found at www.kccllc.net/lodgenet .
Miller Buckfire & Co. LLC, a wholly-owned subsidiary of Stifel Financial
Corp., FTI Consulting, Inc. and Moorgate Securities LLC served as financial
advisors to LodgeNet; Weil, Gotshal & Manges LLP acted as restructuring legal
counsel; and Leonard, Street and Deinard acted as corporate legal counsel to
the Company. Akin Gump Strauss Hauer & Feld LLP and CDG Group, LLC acted as
advisors to the agent for the lenders.
LodgeNet Interactive is the leading provider of interactive media and
connectivity services to hospitality and healthcare businesses and the
consumers they serve. Recently named by Advertising Age as one of the Leading
100 US Media Companies, LodgeNet Interactive serves approximately 1.5 million
hotel rooms worldwide in addition to healthcare facilities throughout the
United States. The Company's services include: Interactive Television,
Broadband and Advertising Media Solutions along with nationwide technical and
professional support services. LodgeNet Interactive owns and operates
businesses under the industry leading brands: LodgeNet, The Hotel Networks and
LodgeNet Healthcare. For more information, please visit www.lodgenet.com.
LodgeNet and the LodgeNet logo are registered trademarks of LodgeNet
Interactive Corporation. All rights reserved.
SOURCE LodgeNet Interactive Corporation
Contact: Ann Parker, Director, Investor Relations, +1-605-988-1000,
email@example.com, or Mike Smargiassi, Brainerd Communicators,
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