NEW YORK—A federal Bankruptcy Court judge signed off on Extended Stay America’s reorganization plan following the company’s purchase by a group of investment firms.
View the U.S. Bankruptcy Court filing.
• Read “ESA sold for US$3.93B to Centerbridge-Paulson-Blackstone group.”
The signing apparently ends a tug-of-war between the investment groups and a competing bid led by Starwood Capital, which had objected to the sale. Starwood has dropped its objections, according to a Reuters report. The plan reflects terms of the original agreement, which was presented in March.
• Read “ESA files Ch. 11 reorganization plan.”
Background
ESA, based in Spartanburg, South Carolina, entered bankruptcy on 15 June 2009 with reported liabilities of US$7.6 billion as of 31 December.
The company has nearly 700 hotels comprising more than 76,000 guestrooms in the United States and Canada. It’s brands are: Extended Stay Deluxe, Extended Stay America, Homestead Studio Suites, Crossland Economy Studios and Studio Plus Deluxe Studios.