Hotel Media Firm Restructures with Aid of Colony, DirecTVTuesday, January 29, 2013
LodgeNet Interactive Corp., a South Dakota specialty cable TV provider, has filed a reorganization plan that involves two Los Angeles-area firms, Colony Capital LLC and DirecTV.
LodgeNet Interactive Corp, which is based in Sioux Falls and provides cable TV services for hotels and health care businesses, said in a Chapter 11 filing over the weekend that it will be taken over by affiliates of Colony, a Santa Monica real estate investment company. LodgeNet also is signing a revised contract with El Segundo satellite TV provider DirecTV to better enable room upgrades to HD technology and expand in a more cost-effective manner while offering DirecTV cable and on-demand movie services. LodgeNet clients include Hilton Worldwide and Marriott International Inc.
Colony will invest $60 million in growing LodgeNet. LodgeNet had $292 million in assets and $449 million in debts as of Sept. 30. It has struggled since the recession as fewer hotels contracted to use its services and guests bought fewer pay-per-view movies during their stays. The company said it expects to emerge from bankruptcy with 60 days.