Bankruptcies keep coming as Wall Street waits for rebound

Extended Stay Hotels and Six Flags Inc. (SIXF) today reminded investors not to count their chickens before they are hatched.

The operator of extended stay hotels in 44 states and the owner of 20 theme parks, including New Jersey's Great Adventure, both filed for Chapter 11 bankruptcy protection. The problems at Extended Stay and Six Flags predate the current economic crisis but certainly were exacerbated by it.

In 2007, closely held Lightstone Group,which is not known for its expertise in the hotels business, bought Extended Stay Hotels from Blackstone Group LP (BX). New Jersey-based Lightstone Group funded the $8 billion acquisition with $7 billion of debt. The debt load is crushing Extended Stay, according to court papers cited by Bloomberg News.