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LodgeNet implements recapitalization through expedited Chapter 11 bankruptcy

The transaction will be implemented through an expedited Chapter 11 bankruptcy process, at the conclusion of which the Colony Syndicate would become the controlling stockholder of the company. Colony has also executed a memorandum of understanding with DirecTV (DTV), setting forth certain terms pursuant to which LodgeNet and DIRECTV intend to operate as strategic partners within the hospitality and healthcare markets. As part of the expanded partnership between the two companies, DirecTV will provide its world-class operational, technological and marketing capabilities to help deliver new and improved LodgeNet services to the industry. Under the terms of these agreements, the Colony Syndicate will receive new common stock representing 100 percent ownership of LodgeNet.