* Hotel chain goes to investor group for $3.925 billion
* Investors include Centerbridge Partners, Blackstone
SAN FRANCISCO, Oct 8 (Reuters) - Extended Stay America Inc emerged from bankruptcy on Friday as an investment group including Blackstone Group (BX.N), Paulson & Co and Centerbridge Partners bought the hotel chain for $3.925 billion, Extended Stay said.
The investment group acquired the company under a reorganization plan put forth earlier this year, the company said in a statement. [ID:nN20266406]
Extended Stay America, a chain of about 680 hotels, filed for Chapter 11 protection in June 2009, with more than $7 billion in debt stemming from a 2007 leveraged buyout by Lightstone Holdings and the 2008 financial crisis.
The Centerbridge team had clashed with a Starwood Capital Group-led faction that sought control of the chain. But the Centerbridge group won an auction for the company, and Starwood Capital ultimately dropped its opposition to the winning bid.
The case is In re: Extended Stay Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-13764. (Reporting by Dan Levine; editing by Carol Bishopric) (firstname.lastname@example.org; +1 415 348-4726)