By Tanya Agrawal
Jan 28 (Reuters) - LodgeNet Interactive Corp, a
provider of on-demand video services to hotels and hospitals,
filed for bankruptcy protection, and said private equity firm
Colony Capital LLC will invest $60 million in exchange for full
ownership of the reorganized company.
LodgeNet said on Sunday it would enter into an agreement
with DirecTV, which will assume the cost of installing
its systems.
The company's customers include hotels managed by Hilton
Worldwide and Marriott International Inc.
The Sioux Falls, South Dakota-based company said its
problems have been compounded by the increased use of mobile
devices by hotel guests.
LodgeNet, which filed for a pre-packaged bankruptcy, said
its restructuring agreement has the support of more than 56
percent of its lenders.
The company, which employs about 770 people, listed assets
of about $291.7 million and liabilities of $448.7 million as of
Sept.30.
The Case is In re: LodgeNet Interactive Corp, U.S.
Bankruptcy Court, Southern District of New York, No:13-10238.
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