A U.S. bankruptcy court has approved a bid for Innkeepers USA Trust valued at $1.14 billion by affiliates of Five Mile Capital and Lehman Brothers Holding Inc, bringing the bankrupt hotel chain a step closer to exiting Chapter 11 protection. As part of the deal, asset management firm Five Mile Capital Partners and Lehman Ali, a unit of Lehman Brothers, together agreed to provide $174.1 million in equity capital to Innkeepers. Five Mile and Lehman also agreed to convert $200.3 million of their debt into 100 percent equity in the reorganized Innkeepers. The deal is backed by Midland Loan Services Inc, a special servicer to a $825 million fixed rate mortgage loan, which will be reduced to $622.5 million under the proposed plan.
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