Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Colony to Take Over as LodgeNet Files for Bankruptcy
Author: Joel R. Glucksman
Date: January 22, 2013
Key Contacts
Back
Filing for Bankruptcy
A company that provides video and internet services to hotels and health sectors has filed for protection under bankruptcy law, and plans to hand over the reins to another business.
LodgeNet Interactive Corp. filed for Chapter 11 protection following an agreement with Colony Capital, in which the latter will provide $60 million in recapitalization funding to the distressed company. The expedited bankruptcy process will make Colony the controlling shareholder, and
it will receive new common stock that represents full ownership. LodgeNet said that the new agreement will allow it to undergo reorganization proceedings without any interruption to its service.
LodgeNet chairman Doug Bradbury said he is pleased with the deal, which will enable LodgeNet to continue providing services to more than 1.5 million hotel rooms nationwide.
“Under Colony’s leadership, LodgeNet is poised to transform its business through renewed financial strength, the introduction of new and innovative products and services, and strengthened industry relationships, thus re-affirming its position as the leading provider of interactive services to the hospitality and healthcare industries,” Bradbury said.
Bradbury also said that a steering committee of lenders has supported a five-year extension of its $346 million secured credit facility. He expects all unsecured creditors to be paid at the end of the bankruptcy process. Another aspect of the agreement mandates that LodgeNet and DirecTV must operate as strategic partners within both the hospitality and health-care markets. In addition to hotels, the company launched its eSUITE system in 68 medical facilities across the country in 2011.
Roughly 95 percent of LodgeNet’s revenue comes from the hotel industry, and Hilton Worldwide and Marriott International accounted for nearly one-third of its sales last year. However, the company has not posted an annual profit since 2006.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.