The restructuring would deleverage Hilton’s capital structure by as much as $3.8 billion, Lehman said in the filings, dated Feb. 23.
The plan also proposes extending mortgage loans and senior mezzanine loans for two years and converting about $2 billion of the most junior loans to preferred equity. In addition, Blackstone, Hilton’s parent, would contribute $800 million to repay a portion of the loans taken out to acquire Hilton in 2007.
Lehman said it holds a “small fraction” of the total debt proposed to be restructured, and it has asked the court’s permission to participate. (Reporting by Chelsea Emery; editing by John Wallace)