Cerberus Capital Management LP's deal to purchase 64 hotels from bankrupt Innkeepers USA Trust could still go forward, but at a lower price, two people close to Innkeepers and its creditors said on Wednesday. Private equity firm Cerberus and its joint venture partner Chatham Lodging Trust (CLDT.N) on Friday terminated a deal to buy the hotels for $1.12 billion, including $700 million of debt, but are open to a new agreement if Innkeepers and its creditors renegotiate, the people said. Spokesmen for Chatham and Cerberus failed to comment on Wednesday. Innkeepers also declined to comment. The sources requested anonymity because they are not authorized to discuss negotiations. Cerberus and Chatham won the hotels in a bankruptcy auction in May, but invoked a clause in the paperwork to let them back out if there were a "material adverse change" at Innkeepers, which has been under Chapter 11 protection for a year.
Chatham Lodging Trust is a hotel investment company. Shares of CLDT fell by 0.49% or $-0.05/share to $10.19. In the past year, the shares have traded as low as $9.84 and as high as $19.46. On average, 78345 shares of CLDT exchange hands on a given day and today's volume is recorded at 55031.
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