A trial is set to begin Oct. 10 in Innkeepers USA Trust's (INKPQ.PK) lawsuit accusing Cerberus Capital Management LP and Chatham Lodging Trust (CLDT.N) of wrongly backing out of a deal to purchase 64 hotel properties out of bankruptcy. Judge Shelley Chapman set the start date for the three-day trial at a hearing on Wednesday in U.S. Bankruptcy Court in Manhattan, striking a compromise between two sides with very different views of how to proceed to trial. Innkeepers filed the lawsuit on Monday after Cerberus and Chatham invoked a "material adverse effect" (MAE) clause letting them pull out of the $1.12 billion deal. The company asked the court to expedite the litigation, saying the matter needs quick resolution so it can market itself to new buyers. Innkeepers had wanted a trial to begin in late September, with Cerberus angling for an Oct. 24 start date. The Oct. 10 date will mean opening the courts on the U.S. Columbus Day holiday, when the government, banks and schools are typically closed. The trial will continue Oct. 11 and 12, Chapman said. The parties are still discussing scheduling for filing pre-trial briefs.
Chatham Lodging Trust is a hotel investment company. Shares of CLDT remained unchanged at $10.02. In the past year, the shares have traded as low as $9.38 and as high as $19.46. On average, 80928 shares of CLDT exchange hands on a given day and today's volume is recorded at 77234.
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