UPDATE 2-Hotel chain Extended Stay files for bankruptcy

* Says no plans to close or sell any of its hotels

* Does not seek DIP financing

* Lists assets of $7.1 bln, debt of $7.6 bln (Recasts; adds details from statement, court filings)

By Santosh Nadgir

BANGALORE, June 15 (Reuters) - U.S. hotel chain Extended Stay Inc [ESAIN.UL] filed for bankruptcy protection on Monday, becoming the latest victim of the U.S. recession as business travel has declined amid corporate cutbacks.

The company, which filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Manhattan, said it had no plans to close or sell off any of its hotels.

The company also said it did not seek any debtor-in-possession financing as it generates "significant positive cash flow."

In documents filed with the court, the company said it was in a liquidity crisis as the recession had a devastating impact on occupancy rates.

Extended Stay said it was "significantly over-leveraged" and the projected cash flows could not continue to service its debt, which is in excess of $7 billion.