reported

The SEC document states that Centerbridge and Paulson would invest $225 million in Extended Stay, which filed Chapter 11 last June, and also backstop an equivalent amount in a rights offering. The money will sponsor a reorganization plan for some Extended Stay affiliates that are currently under bankruptcy protection.

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

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