Innkeepers Deal Passes Muster With Lehman Judge

Law360, New York (August 18, 2010, 1:20 PM EDT) -- Bankrupt Lehman Brothers Holdings Inc. won approval Wednesday to enter into a debt-for-equity swap in the bankruptcy of hotel owner Innkeepers USA Trust and to sell half of the resulting stake to private equity firm Apollo Investment Corp. for $107.5 million.

Judge James M. Peck approved Lehman’s entry into a Chapter 11 plan support agreement for Innkeepers at a hearing in the U.S. Bankruptcy Court for the Southern District of New York.

The proposal, under which Innkeepers would exchange $220 million in debt from Lehman for...
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