Innkeepers USA Trust (INKPQ.PK) has reached a deal with its major creditors that will cut the bankrupt hotel chain's debt by over $400 million and clear the way for the company to emerge from Chapter 11 protection. As part of the deal, asset management firm Five Mile Capital Partners LLC and Lehman Ali, a unit of Lehman Brothers Holdings Inc (LEHMQ.PK), together agreed to provide $174.1 million in equity capital to the company. Five Mile and Lehman also agreed to convert $200.3 million of their debt into 100 percent equity in the reorganized Innkeepers. Innkeepers has been looking for options to exit Chapter 11 after a Manhattan bankruptcy judge shot down an earlier agreement with Lehman (LEHMQ.PK) last September. [ID:nSGE6AA0NU]
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