Troubled television and communications provider LodgeNet Interactive said it has received notice from NASDAQ that its shares will be delisted from the Exchange on Jan. 14, pending its expected bankruptcy filing.
LodgeNet said on Dec. 31 that Colony Capital LLC, its affiliates and certain other investors have agreed to invest $60 million in a recapitalization of the company that will be implemented through an expedited Chapter 11 bankruptcy filing. In return for the investment, Colony Capital and its affiliates will receive 100% of LodgeNet’s equity. Pursuant to the bankruptcy filing, holders of LodgeNet’s outstanding stock will have their shares cancelled without receiving any distribution.
LodgeNet shares have been trading under $1 each for more than 30 days, which prompted the delisting. The company, which provides television, pay-per-view and Internet service to the hospitality industry, has fallen on hard times in the past few years as cable operators, other competitors and room guests armed with laptops and an Internet connection have encroached on its business. In the second quarter, revenue declined 13% to $92.8 million and the company reported a net loss of $95.5 million.
In September, the company hired former Fox National Cable Networks executive Rich Battista as CEO to help it find a buyer.
LodgeNet shares closed at 4 cents each on Jan. 8, unchanged.