LodgeNet Investment Corp. said Monday that it is filing for Chapter 11 bankruptcy protection and will be acquired by investment firm Colony Capital.
LodgeNet provides video, Internet and advertising services to the lodging and health care sectors. The company said that it will continue to operate during the expedited bankruptcy process. When that is complete, Colony will own LodgeNet.
LodgeNet says a Colony Capital affiliate will provide it with $60 million in new capital, and that funding will be used to support a recapitalization of the company. It also received commitments for up to $15 million in debt financing from creditors. LodgeNet, based in Sioux Falls, S.D., said its lenders will extend their credit agreements. The company said it has a secured credit facility worth about $346 million.
LodgeNet also said it will form a strategic partnership with DirecTV LLC in the hospitality and health care markets.