Judge Denies Innkeepers' Agreement With Lehman

Law360, New York (December 21, 2010, 8:45 PM EST) -- A bankruptcy judge has denied Innkeepers USA Trust's proposed plan support agreement with creditor Lehman Ali Inc. that would swap a $238 million secured claim for substantially all of the reorganized company's equity.

Judge Shelley C. Chapman issued the decision in the U.S. Bankruptcy Court for the Southern District of New York on Tuesday, pointing out that almost all non-Lehman creditors were unhappy with the plan.

Various creditors had filed objections saying they were shut out of the plan development process and were denied access to...
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