Innkeepers Gets Approval to Dispose Assets

28th June 2011 (Last Updated June 28th, 2011 18:30)

Apollo Investment-owned Innkeepers has received approval from the US Bankruptcy Court in Manhattan, New York, to sell 64 of its 72 hotels to Cerberus Capital Management and Chatham Lodging Trust for $1.12bn. Chatham Lodging Trust and Cerberus Capital Management's bid beat an initial $97

Apollo Investment-owned Innkeepers has received approval from the US Bankruptcy Court in Manhattan, New York, to sell 64 of its 72 hotels to Cerberus Capital Management and Chatham Lodging Trust for $1.12bn.

Chatham Lodging Trust and Cerberus Capital Management’s bid beat an initial $971m offer from Five Mile Capital Partners and Lehman Ali, a unit of Lehman Brothers Holdings.

Innkeepers said its debt, including $1.29bn in secured debt, prompted the company to file for bankruptcy protection in July 2010.

The buyers will put up $400m in cash and assume nearly $720m in mortgage debt, while the cash will be used to pay down a $220m senior debt claim from Lehman Ali.