LodgeNet Interactive filed for bankruptcy protection with plans to be taken over by affiliates of Colony Capital, which will invest $60 million and work with DirecTV to provide on-demand movies to hotel rooms.
LodgeNet had about $292 million in consolidated assets and about $449 million in consolidated debt as of Sept. 30, 2012, according to court papers filed yesterday in U.S. Bankruptcy Court in New York. LodgeNet reported consolidated revenue of about $379 million for the twelve months ending Sept. 30, court papers show.
LodgeNet, based in Sioux Falls, South Dakota, hasn’t posted an annual profit since 2006. Last year, 95 percent of its revenue came from the hotel industry, with Hilton Worldwide and Marriott International Inc. accounting for about a third of sales, according to company filings. LodgeNet has been trying to expand in health care, and its eSUITE system was installed in 82 medical facilities representing about 18,600 beds, court papers show.
The proposed restructuring agreement calls for LodgeNet and DirecTV (DTV) to operate as strategic partners within the hospitality and health-care markets, according to the statement. More than 56 percent of the pre-petition lenders and 73 percent of the total amount of debt under the agreement have voted to accept the plan, according to court papers.
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