Creditor Raises Flags Over Innkeepers' Lehman Deal

Law360, New York (July 20, 2010, 5:50 PM EDT) -- Secured creditor Midland Loan Services Inc. has voiced concerns about a restructuring proposal for bankrupt Innkeepers USA Trust involving a debt-for-equity swap with a Lehman Brothers Holdings Inc. affiliate, saying the deal could unfairly benefit Apollo Investment Corp.

Lawyers for the South Florida hotel investment firm said in a hearing Tuesday in the U.S. Bankruptcy Court for the Southern District of New York that Midland had objected to a side arrangement to the proposed swap, under which Lehman would sell half its equity stake to Apollo....
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