US Trustee Pans Part Of Innkeepers' Reorganization

Law360, New York (May 23, 2011, 10:20 PM EDT) -- A U.S. trustee objected Monday in New York to bankrupt hotel operator Innkeepers USA Trust's plan to sell five of its properties for $195 million to a joint venture of Cerberus Capital Management LP and Chatham Lodging Trust.

Under the $195 million plan, part of a broader restructuring effort, the bankruptcy court would issue an order allowing Innkeepers investor Apollo Investment Corp. to escape claims related to its possible negligence — a release that is not justified, U.S. Trustee Tracy Hope Davis said. Apollo, which bought...
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