• Extended Stay restructure criticised

The plan to reorganise Extended Stay has drawn an objection from the US Government. Acting US Trustee Tracy Hope Davis said parts of Extended Stay’s chapter 11 reorganisation plan improperly offered "non-debtors" broad protection from lawsuits and other legal action. 

Extended Stay’s plan calls for private equity firm Centerbridge Partners, hedge fund firm Paulson & Co and Blackstone Group to take over the company for $3.93bn, a bid accepted at a court-supervised auction. But Davis said that, by shielding non-debtors from a range of potential claims, the plan improperly limits the ability of creditors to recover, news wires reported.

http://uk.reuters.com/article/idUKN0716518320100707

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