Innkeepers Trustee Says Equity Committee Not Needed

Law360, New York (September 22, 2010, 3:55 PM EDT) -- The trustee overseeing Innkeepers USA's bankruptcy has objected to a motion to form an official equity committee, saying there isn't enough proof that the shareholders would recover much from the troubled hotel company.

In an objection filed Tuesday in the U.S. Bankruptcy Court for the Southern District of New York, Trustee Tracy H. Davis shot down several arguments the shareholder group made in its Sept. 13 motion calling for an equity committee.

The preferred shareholders — including Brencourt Credit Opportunities Masters Ltd., Esopus Creek Value LP...
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