Innkeepers USA Trust won approval to extend control over its bankruptcy amid a dispute with Cerberus Capital Management LP and Chatham Lodging Trust over whether they will buy 64 of its hotels.
The new deadline to file a Chapter 11 plan will be Nov. 10 once a formal order is submitted, U.S. Bankruptcy Judge Shelley Chapman said today in Manhattan. Control over the case had been set to expire Oct. 1. Innkeepers scaled back a request to extend the date to Jan. 19, saying it would revisit the issue Nov. 9 if needed.
The operator of 71 hotels, including Residence Inns, Marriott hotels and Hampton Inns, received court approval of a plan in June, before Cerberus and Chatham sought to cancel their $1.1 billion purchase citing a change in market conditions or Innkeepers’ business. Innkeepers sued, saying there has been no such change since reaching the binding agreement May 16.
via Innkeepers Wins Approval to Extend Control of Bankruptcy.