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LodgeNet to File for Bankruptcy

From BloombergBusinessweek
LodgeNet to File for Bankruptcy
LodgeNet Interactive Corp. (LNET) said it will file for bankruptcy protection under an agreement with affiliates of Colony Capital LLC, which will invest $60 million in the provider of on-demand movies to hotel rooms.

The Colony affiliates will become the Sioux Falls, South Dakota-based companyís controlling shareholder through an expedited bankruptcy process, LodgeNet said in a statement today. Los Angeles-based Colony will receive new common stock representing full ownership, according to the statement.

LodgeNet hasnít 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 (LNET) for about a third of sales, according to the companyís filings. LodgeNet has been trying to expand in health care, and its eSUITE system was installed in 68 medical facilities at the end of 2011, according to an annual filing. Click here for the full story.

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