reported

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The SEC document states that Centerbridge and Paulson wouldinvest $225 million in Extended Stay, which filed Chapter 11last June, and also backstop an equivalent amount in a rightsoffering. The money will sponsor a reorganization plan for someExtended Stay affiliates that are currently under bankruptcyprotection.

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Extended Stay, which was acquired by Lightstone Group for $8billion in 2007, also filed a reorganization plan with the USBankruptcy Court for the Southern District of New York and askedthat a date be set for filing its disclosure statement. The companystates that it is not precluded from negotiating with other plansponsors.

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In its Chapter 11 filing, Extended Stay cited $7.1 billion inassets and $7.8 billion in liabilities. The national hotel chain,with 680 properties totaling 77,000 rooms, cited a contraction ofnew development as having an adverse impact on company revenue.

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