Innkeepers Sue Cerberus, Chatham Over Dead $1B Deal

Law360, New York (August 29, 2011, 8:18 PM EDT) -- Upscale hotel operator Innkeepers USA Trust sued a Cerberus Capital Management LP unit and Chatham Lodging Trust in New York bankruptcy court on Monday over the funds' decision to break a deal to buy 64 properties.

Innkeepers, a bankrupt real estate investment trust that operates hotel chains such as Hilton and Hyatt, filed an adversary proceeding against Cerberus Series Four Holdings LLC, Chatham and related entities for nixing an agreement worth $1.1 billion last week.

While Cerberus and Chatham said that the contract allowed the firms...
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