LodgeNet sees emerging from bankruptcy in 60 days

Hotel media provider LodgeNet Interactive Corp. LNET -21.43% filed for Chapter 11 bankruptcy to execute an agreement with private equity firm Colony Capital LLC that will infuse $60 million into the business in exchange for control of the company.

LodgeNet said it plans to complete the restructuring within 60 days. The company, which provides cable television to hotels and health-care businesses, said that it has been seeing declining revenues since 2009 as fewer hotels used its services--1.5 million currently, down from two million in 2009, and guests ordered fewer pay-per-view movies.

As part of the restructuring, LodgeNet also negotiated a new partnership with DIRECTV (DTV), whereby DIRECTV will support the restructuring and will assume some installation costs so that LodgeNet can continue to provide DIRECTV cable to its customers.

LodgeNet, in documents filed with the U.S. Bankruptcy Court in Manhattan, said the deal will allow it to repay unsecured creditors in full. Secured creditors will a share of a $346.4 million payment, a 99% recovery.

full: http://www.marketwatch.com/story/lodgenet-sees-emerging-from-bankruptcy-in-60-days-2013-01-28