REPORT FROM THE U.S.—Extended Stay America on Friday officially emerged from its 16-month stay in Chapter 11 following its US$3.9-billion purchase by an investment group led by Blackstone Real Estate Partners VI, Paulson & Company and Centerbridge Partners.
News of the purchase first became public in July.
- Read “ESA announces Ch. 11 exit.”
A search of bankruptcy court records did not reveal any significant additional details regarding ESA’s emergence.
A spokeswoman for Blackstone said the private equity behemoth had no further comment. Representatives of Centerbridge and Paulson did not return calls for comment before deadline this morning.
An e-mail left for a representative of Weil, Gotshal & Manges, which served as lead bankruptcy counsel for ESA, also was not immediately returned.
ESA’s 685 properties in the United States and Canada will continue to be operated by separately owned HVM LLC.
“I am particularly grateful to our associates, suppliers and travel partners for their support during this process, especially in light of the difficult circumstances in which we and the entire industry have been operating," DeLapp, president and CEO of HVM, said in a statement.
Bankruptcy backgrounder
ESA entered bankruptcy in June 2009 with liabilities of US$7.6 billion as of 31 December 2008.
The bankruptcy was marked by a lengthy tug-of-war battle between Starwood Capital Group and Centerbridge/Paulson. Starwood previously announced its intention to invest up to US$905 million in ESA. That plan was eventually left on the table in favor of the Blackstone-Centerbridge-Paulson offer.
ESA was acquired in June 2007 for US$8 billion by a group led by David Lichtenstein, founder and CEO of real estate investing company The Lightstone Group.