SIOUX FALLS, S.D., Jan. 16, 2013 /PRNewswire/ -- LodgeNet
Interactive Corporation, the leading provider of interactive media
and connectivity services to hospitality and healthcare businesses
and the consumers they serve, announced today that Rich Battista will depart as President, CEO and
director of the Company as of January
16, 2013. Frank Elsenbast, the Company's CFO,
and James Naro, the Company's
General Counsel, have been appointed interim co-CEOs.
(Logo:
http://photos.prnewswire.com/prnh/20080115/AQTU120LOGO)
During his tenure, Battista successfully guided LodgeNet through
a strategic review process that recently concluded with the
announced $60 million
recapitalization plan with an investor syndicate led by Colony
Capital. The recapitalization is designed to place LodgeNet on a
path to revitalize its business and balance sheet, while delivering
strong cash flow. The recapitalization also includes a five-year
extension of the Company's secured credit facility with its
lenders.
"Rich has done a first-rate job as our president & CEO,
leading us through this transaction to secure the Company's
future," said LodgeNet Interactive Chairman Doug Bradbury. "Under the Colony Capital-led
syndicate, LodgeNet is poised to transform its business and
re-affirm its position as the industry leader in providing
interactive products and services to the hospitality and healthcare
markets. We thank Rich for his significant contributions to the
Company during this important time and wish him well in his future
endeavors."
"My time at LodgeNet has been very rewarding," said Rich Battista. "I am proud of what we have
accomplished in signing our recapitalization agreement with Colony
and our lenders in order to return LodgeNet to strong financial
footing. The Colony-led syndicate brings significant resources,
both financial and strategic, to the Company. It is now time to
pass the baton and I do so knowing that the company is in terrific
hands and on an exciting path towards strong future success."
As co-CEOs, Messrs. Elsenbast and Naro will oversee the
completion of the previously announced transaction through the
court-supervised process. Upon closing of the transaction, the
Company will be appointing a new CEO.
About LodgeNet
LodgeNet Interactive is the leading provider of interactive
media and connectivity services to hospitality and healthcare
businesses and the consumers they serve. Recently named by
Advertising Age as one of the Leading 100 US Media
Companies, LodgeNet Interactive serves approximately 1.5 million
hotel rooms worldwide in addition to healthcare facilities
throughout the United States. The
Company's services include: Interactive Television, Broadband and
Advertising Media Solutions along with nationwide technical and
professional support services. LodgeNet Interactive owns and
operates businesses under the industry leading brands: LodgeNet,
The Hotel Networks and LodgeNet Healthcare. For more information,
please visit www.lodgenet.com.
LodgeNet and the LodgeNet logo are registered trademarks of
LodgeNet Interactive Corporation. All rights reserved.
Special Note Regarding Forward-Looking Statements –
Certain statements in this press release constitute
"forward-looking statements," including, without limitation,
statements regarding the Company's investment agreement with the
Colony Syndicate and the Company's proposed recapitalization, the
Company's ability to continue operations during the pendency of the
bankruptcy case, the agreement with DIRECTV, and the effect of
actions of the Bankruptcy Court on the Company's assets and
operations.
Such forward-looking statements are subject to risks,
uncertainties and other factors that could cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, the Company's ability to comply with the terms
of the investment agreement with the Colony Syndicate, including
the conditions to closing, which require, among other things, that
the Company maintain a certain minimum amount of liquidity,
maintain certain material contracts, and obtain the Bankruptcy
Court's approval of its Chapter 11 plan of reorganization; the
Company's ability to obtain Bankruptcy Court approval with respect
to its motions in the Chapter 11 proceedings; risks associated with
third party motions in the Chapter 11 proceedings, which may
interfere with the Company's ability to consummate its plan of
reorganization; the potential adverse effects of the Chapter 11
proceedings on the Company's business, customer relationships,
liquidity or results of operations; continued compliance with
conditions for funding under the debtor-in-possession financing
facility; the ability to execute the Company's business and
restructuring plan to achieve desired cost savings and additional
capital to improve liquidity; the Colony Syndicate's ability to
reach a definitive agreement with DIRECTV; and other factors
detailed, from time to time, in our filings with the Securities and
Exchange Commission. For any of the foregoing reasons, our
anticipated results may not meet our expectations. These
forward-looking statements speak only as of the date of this press
release. We expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
SOURCE LodgeNet Interactive Corporation