Looks like investors bidding for bankruptcy hotel chain Extended Stay will need a late checkout. Its owners appear to be back to favoring a bid by Centerbridge Partners and Paulson & Co that just got sweeter.
The investors increased their bid for the chain, topping a rival offer led by the Starwood Group, which unseated them in the first place.
But the group’s latest offer may not be the last word on the future of the bankrupt company. A source told Reuters the situation could change again, as an auction for the hotel chain will be held in May.
Extended Stay was bought in June 2007 by an investor group led by David Lichtenstein’s Lightstone Group. It sought bankruptcy protection last year with a debt load of more than $7 billion.
In February, Centerbridge and Paulson agreed to invest up to $450 million in the company once it exits Chapter 11. But it was topped last month by the Starwood-led group, which agreed to invest up to $905 million to bring it out of bankruptcy protection.