NEW YORK (AP) — LodgeNet Investment Corp. says it is filing for Chapter 11 bankruptcy protection and will be acquired by investment firm Colony Capital.
LodgeNet provides video, Internet and advertising services to the lodging and health care sectors, and the company said Monday that it will operate during the expedited bankruptcy process. When that is complete, Colony will own LodgeNet.
The Sioux Falls, S.D., company says a Colony Capital affiliate will provide it with $60 million in new capital, and LodgeNet's lenders will extend their credit agreements. The company said it has a secured credit facility worth about $346 million.
LodgeNet says it will form a strategic partnership with DirecTV in the hospitality and health care markets.