Law360, New York (October 19, 2010, 8:00 PM EDT) -- A bankruptcy judge nixed a bid Tuesday by Innkeepers USA Trust’s ad hoc committee of preferred shareholders for an examiner to investigate the sale of the company’s assets to a Lehman Brothers Holdings Inc. affiliate, which the committee said unfairly snuffs out the preferred shareholders’ stake in the company.
Judge Shelley C. Chapman denied the committee’s motion for an examiner in an order lodged in the U.S. Bankruptcy Court for the Southern District of New York.
The preferred shareholders argued the examiner was needed because the...
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