Preferred Shareholder Fights Innkeepers Ch. 11 Plan

Law360, New York (June 17, 2011, 5:40 PM EDT) -- Innkeepers USA Trust preferred shareholder One East Capital Advisors LP objected Friday to the hotel operator's reorganization plan in New York bankruptcy court, saying it releases third-party nondebtors like Innkeepers owner Apollo Investment Corp. from too wide an array of claims.

Preferred shareholders are expected to sign off on those far-reaching releases in exchange for "uncertain, small" cash recoveries for their shares of between 0 and 6 percent that are due to come from Innkeepers' sale of its Chatham Hotel, an arrangement that "impermissibly takes value"...
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