Innkeepers Buys Time In Suit Over $1B Cerberus Bid

Law360, New York (September 14, 2011, 6:53 PM EDT) -- A New York bankruptcy judge on Wednesday gave Innkeepers USA Trust more time to continue contract litigation against a Cerberus Capital-led investment group that reneged on a $1.1 billion deal to buy 64 hotels from the bankrupt property owner.

U.S. Bankruptcy Judge Shelley Chapman approved Innkeepers' agreement with Cerberus Four Holdings LLC, Chatham Lodging Trust and other entities that extends the company's exclusive control over the advancement of a reorganization plan until at least Nov. 9.

The agreement buys Innkeepers time to continue its breach-of-contract suit...
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