Innkeepers USA Trust, the bankrupt manager of more than 70 hotels, gained court approval on Friday of a plan to sell most of its properties to Cerberus Capital Management and Chatham Lodging Trust for $1.12 billion. The deal, green-lighted by Judge Shelley Chapman at a hearing in New York, does not resolve a dispute between Innkeepers and its major secured creditors, Midland Loan Services and Lehman Ali Inc, over the creditors' right to pursue certain claims against guarantors of their liens.
The hearing, initially set for last Tuesday, was postponed seven times as the parties worked out of court to resolve objections. Anup Sathy, an attorney for Innkeepers, said most counterparties are on board with the deal and Chapman granted approval pending a chance to read a finalised version of the company's outlined plan.
Cerberus and Chatham won ownership of 64 of Innkeepers' 71 hotels on May 3 after a marathon two-day, 12-round auction. The pair beat out Five Mile Capital and Lehman Ali, which had together submitted an initial "stalking-horse" bid, by about $150 million.
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