SIOUX FALLS, S.D., Jan. 28, 2013 /PRNewswire/ -- LodgeNet Interactive Corporation (OTCBB: LNET) today announced that it has commenced a prepackaged Chapter 11 process in the Southern District of New York in order to effect a recapitalization in which a syndicate of investors led by Colony Capital will invest $60 million in LodgeNet, all as previously announced. (Logo: http://photos.prnewswire.com/prnh/20080115/AQTU120LOGO) Throughout this process, LodgeNet's business operations will continue in the normal course, and current hospitality and healthcare customers will continue to receive services without interruption. Under the terms of the plan, LodgeNet's existing lenders will provide for a multi-year extension of its existing senior debt and unsecured creditors of LodgeNet will be paid in full in cash for any prepetition claims at the conclusion of the restructuring process. LodgeNet has secured overwhelming support from its lenders, having received lenders' votes in excess of the amounts needed for the court to approve its plan of reorganization. "Our recapitalization is advancing on schedule," commented LodgeNet co-CEOs Frank Elsenbast and James Naro. "Thanks to the overwhelming support we've received from our lenders and suppliers, and with the solid commitment of Colony Capital and an expanded strategic partnership with DIRECTV, we anticipate being able to complete this process on an expedited basis, and to emerge with the capacity to launch new and exciting products which will benefit both our hospitality and healthcare customers." The Company also negotiated a debtor-in-possession (DIP) facility from certain of its existing lenders providing for up to $15 million in new financing which, subject to the approval of the court, makes funds available to satisfy the customary obligations of LodgeNet's business during the course of the restructuring process. Pursuant to the contemplated plan of reorganization, holders of the existing Series B Preferred Stock and common stock issued by LodgeNet Interactive will have their interests cancelled and will not receive any distributions.