Innkeepers Judge Greenlights Probe Into Apollo

Law360, New York (August 25, 2010, 4:43 PM EDT) -- Creditors of Innkeepers USA Trust won permission Wednesday to investigate whether Apollo Investment Corp.'s 2007 buyout of the hotel owner pushed it into bankruptcy protection.

Judge Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York granted the request to conduct Rule 2004 examination despite objections from Apollo and a Lehman Brothers Holdings Inc. affiliate serving as a restructuring partner.

A further hearing on the appointment of an examiner in the case has been scheduled for Sept. 1.

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