Lenders Want Opening For Rival Innkeepers Plan

Law360, New York (September 15, 2010, 12:43 PM EDT) -- A group of lenders has asked a federal judge to open up restructuring proceedings in the bankruptcy of hotel company Innkeepers USA Trust to a $236 million reorganization bid from secured debt administrator Midland Loan Services Inc.

The lenders filed a motion Tuesday in the U.S. Bankruptcy Court for the Southern District of New York that seeks termination of Innkeepers' exclusive right to propose a Chapter 11 plan.

“It is imperative that these Chapter 11 cases be opened up to permit competing transactions in order to...
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