LodgeNet Interactive says it is filing for Chapter 11 bankruptcy protection as part of a plan to sell itself to investment firm Colony Capital for $60 million.
The Sioux Falls, S.D., company, which provides Internet and on-demand movies to hotels and hospital rooms, said Monday that it is starting the Chapter 11 process with a filing in the Southern District of New York. It expects to complete its restructuring within 60 days.
LodgeNet said Dec. 31 that it would file for Chapter 11 bankruptcy protection and be acquired by Colony Capital.
The investment firm will provide LodgeNet with $60 million in new capital. LodgeNet also received commitments for up to $15 million in debt financing from creditors and said it will form a partnership with pay-TV provider DirecTV.