LodgeNet to File for Bankruptcy as Colony Takes Control
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LodgeNet Interactive Corp. said it will file for bankruptcy protection under an agreement with affiliates of Colony Capital LLC, which will invest $60 million in the provider of on-demand movies to hotel rooms.
The Colony affiliates will become the Sioux Falls, South Dakota-based company’s controlling shareholder through an expedited bankruptcy process, LodgeNet said in a statement today. Los Angeles-based Colony will receive new common stock representing full ownership, according to the statement.