Innkeepers Shareholder Group Loses Committee Bid

Law360, New York (September 30, 2010, 5:56 PM EDT) -- A federal judge has rejected a request from preferred shareholders of bankrupt Innkeepers USA Trust to form an official committee, saying the group’s interests are already adequately represented.

Judge Shelley C. Chapman issued the ruling during a hearing Thursday in the U.S. Bankruptcy Court for the Southern District of New York saying the preferred shareholders in the bankrupt hotel investment firm failed to show that they had a “substantial” likelihood for recovery.

Moreover, the preferred equity holders' interests appear to be well-represented, she said, noting that...
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