A Sioux Falls, S.D.-based company that provides Internet and on-demand movies to hotels and hospital rooms has announced it is filing for Chapter 11 bankruptcy protection and will be acquired by investment firm Colony Capital.
KELO-TV reports that LodgeNet says it will continue to operate during the bankruptcy process. When the bankruptcy process is complete, Colony Capital will own LodgeNet.
LodgeNet says a Colony Capital affiliate will provide $60 million in new capital. It also has received commitments for up to $15 million in debt financing from creditors.
LodgeNet says it will form a strategic partnership with DirecTV.