From Bloomberg
Innkeepers Hotel Operator Sues Cerberus, Chatham for Breach of Commitment
Innkeepers USA Trust, an operator of Residence Inns, Marriott hotels and Hampton Inns, sued Cerberus Capital Management LP and Chatham Lodging Trust (CLDT), saying its agreement to sell 64 hotels to Cerberus and Chatham can’t be called off due to market conditions or a change in its business. The operator of 71 hotels, expected to exit bankruptcy in July, will go back to court to resolve the dispute. The lawsuit, filed in Manhattan bankruptcy court August 29, says there has been no change in Innkeepers business since a binding agreement was signed May 16. Innkeepers won final court approval of a Chapter 11 reorganization plan June 29 that rested on the sale to Cerberus and Chatham. Cerberus and Chatham said Aug. 22 that they’d ended the $1.1 billion agreement, citing a possible adverse change that could affect Innkeepers’ long-term business. They didn’t state what the change was. Click here for the full story.