Extended Stay court examiner seeks more time

NEW YORK, Feb 1 (BestGrowthStock) – The court appointed examiner
who is probing the collapse of U.S. hotel chain Extended Stay,
on Monday asked the bankruptcy court for additional time to
complete his investigation, according to court papers.

Ralph Mabey, a former bankruptcy judge who was appointed
as the examiner, said he was seeking an additional 21 days to
conduct the investigation, as he has had some difficulty in
obtaining necessary witnesses, documents and other information
that he had hoped to obtain consensually.

The examiner, who was originally expected to file his
report on Feb. 19, asked for a delay until March 12.

Extended Stay filed for bankruptcy protection in June
saying it was “significantly over-leveraged” and that projected
cash flows could not continue to service its more than $7
billion in debt.

In September, a U.S. bankruptcy judge approved a request by
the U.S. Trustee for an examiner to be hired to probe questions
surrounding the purchase and financing of the lodging chain.

The examiner is tasked with looking into the acquisition of
Extended Stay by David Lichtenstein’s Lightstone Group, which
had purchased the chain of 680 hotels from a Blackstone Group
LP (BX.N: ) affiliate, prior to its bankruptcy.

A court hearing on the examiner’s request is scheduled for
Feb. 18.

The case is In re Extended Stay, U.S. Bankruptcy Court for
the Southern District of New York, No. 09-13764.

Stock Market
(Reporting by Emily Chasan; editing by Carol Bishopric)

Extended Stay court examiner seeks more time