Creditors File Complaint Against Lightstone Holdings

A trust representing creditors of bankrupt motel chain Extended Stay America Inc. have filed a complaint against Lightstone Holdings and other parties, Reuters reported Monday. The complaint is aimed at avoiding obligations arising from the loans made by them to fund the 2007 leveraged buyout of the hotel chain, Reuters wrote. Private equity giant Blackstone Group sold Extended Stay in 2007 in an $8 billion deal. The complaint, filed in Manhattan’s bankruptcy court, is seeking to recover funds to benefit creditors.

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