Extended Stay Inc will join with Paulson & Co. and Centerbridge Partners generating $450 million new capitol allowing the hotel chain to exit bankruptcy.

Extended Stay proposed the restructuring plan in bankruptcy court on Friday. Court documents show that Paulson and Centerbridge will invest $225 million into the hotel chain in exchange for a 22.5 percent stake in the company. Holders of Extended Stay’s $4.1 billion debt will receive a 55 percent stake in the company as well as new mortgage notes in excess of $2.5 billion.

The company announced it plans to raise an additonal $225 million through a rights offering. This will give mortgage lenders the right to buy all the shares for an additional 22.5 percent stake plus warrants.

If you are a business owner and are struggling to make regular payments on your debts, you may wish to consider filing for bankruptcy to restructure your business. For more information on bankruptcy, please contact a Boston bankruptcy lawyer of Joshua Spirn & Associates by calling 800-975-5346