Innkeepers' Equity Swap Deal With Lehman Nixed

Law360, New York (September 2, 2010, 3:22 PM EDT) -- A bankruptcy judge has shot down a bid by Innkeepers USA Trust to enter into a debt-for-equity swap with a Lehman Brothers Holdings Inc. affiliate and Apollo Global Management LLC, a decision that comes after creditors objected to the deal's fairness.

Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York on Wednesday denied the debtors' request to enter into a pooling and servicing agreement under which Innkeepers proposed to hand over all of its equity to Lehman Ali Inc.,...
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