LodgeNet says likely to file for bankruptcy
Dec 17 (Reuters) - LodgeNet Interactive Corp, which provides cable TV, on-demand movies, Nintendo video games and Internet services to hotels and hospitals, said it will likely have to file for bankruptcy protection by the end of December.
LodgeNet said it was unable to make payments totaling $26 million to DirecTV and Home Box Office Inc that were due on Monday and had entered into an agreement with them to postpone payment until Dec. 31. ()
LodgeNet said it was unlikely that it would have funds for the payments by Dec. 31 and would have to file for Chapter 11 bankruptcy protection then if the deadline was not extended.
The current extension will allow LodgeNet to continue negotiations with its lenders and a potential investor on a transaction to restructure its operations, the company said.
LodgeNet, which has posted a profit in only three quarters of its past 15 quarters, said in August that it was exploring strategic and refinancing alternatives.