Lawyers for Innkeepers USA Trust (INKPQ.PK) will spend the day on Wednesday hammering out a timetable for its lawsuit against Cerberus Capital Management LP and Chatham Lodging Trust (CLDT.N), the investment firms that abruptly backed out of a deal to purchase 64 of the bankrupt hotel operator's properties. Judge Shelley Chapman ordered the sides to negotiate a schedule by the end of Wednesday at a hearing in U.S. Bankruptcy Court in Manhattan. The parties are expected to appear in court later during the day with updates on negotiations. Innkeepers filed the lawsuit on Monday after Cerberus and Chatham backed out of the $1.12 billion deal. Innkeepers accused the buyers of invoking a "material adverse effect" clause to wrangle a lower price. Innkeepers asked the court to expedite the litigation, saying the matter needs quick resolution so it can market itself to new potential buyers. Cerberus contested the point, saying it should not have to abide by strict scheduling when Innkeepers took nearly three weeks to file the lawsuit after learning Cerberus was investigating a potential MAE event.
Chatham Lodging Trust is a hotel investment company. Shares of CLDT traded higher by 1.0% or $0.1/share to $10.12. 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 37934.
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