4/9/2010

Extended Stay has several viable grounds to sue entities owned by Lightstone Group, its owner, along with Blackstone Group, according to a court-ordered investigation. These legal claims stem from the 2007 leveraged buyout of the chain, the investigation, conducted by a court-appointed examiner, found. Essentially, that deal burdened the hotel chain with $1.7 billion in additional debt, which it couldn't handle and which had no benefit to the company, while benefiting Blackstone and Lightstone.

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