Innkeepers Creditors To Join Trial Over $1B Hotel Deal

Law360, New York (October 6, 2011, 9:09 PM EDT) -- A bankruptcy judge ruled Wednesday that creditors of Innkeepers USA Trust could participate in an upcoming trial over whether a Cerberus Capital Management LP unit and Chatham Lodging Trust improperly reneged on their deal to buy 64 hotels for $1.12 billion.

U.S. Bankruptcy Judge Shelley Chapman approved an agreement between Cerberus, Chatham, Innkeepers and its committee of unsecured creditors, allowing the committee to have a limited role in the trial, which is set to begin Oct. 10 in New York bankruptcy court.

The creditors committee, which...
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