Dec 17 LodgeNet Interactive Corp, a
provider of 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 pay $26 million due to
DirecTV and Home Box Office Inc (HBO) on Monday but had
agreed with them to postpone payment until Dec. 31 to allow it
to continue negotiations with its lenders and a potential
LodgeNet, which has a market capitalization of $3.8 million,
said it was unlikely it be able to pay on Dec. 31 and would have
to file for Chapter 11 bankruptcy protection if the deadline was
Moody's put LodgeNet's debt at $346 million when it said on
Dec. 4 that the company faced bankruptcy, noting it had revenue
of about $379 million in the year to Sept. 30.
LodgeNet, which has posted a profit in only three of the
last 15 quarters, said in August that it was exploring strategic
and refinancing alternatives.
The company's share price has almost halved over the past
six months, closing at 14 cents on Friday.