PALM BEACH, Fla.--(BUSINESS WIRE)--Innkeepers USA Trust and its affiliates (the “Company”) today announced that INK Acquisition LLC, INK Acquisition II LLC, Cerberus Series Four Holdings, LLC (“Cerberus”) and Chatham Lodging Trust (together with Cerberus, “Cerberus/Chatham”) have provided the Company with a notice of termination of their commitments to purchase the equity in entities that own and operate 64 of the Company’s hotels (the “Fixed/Floating Transaction”).
Innkeepers’ Chief Restructuring Officer, Marc A. Beilinson stated: “The Company has no doubt that Cerberus/Chatham terminated the Commitment Letter inappropriately. Accordingly, we are evaluating all legal and equitable remedies against Cerberus/Chatham.”
In their notice of termination, Cerberus/Chatham provided no basis for the termination other than a reference to the provision in the binding commitment letter that would allow Cerberus/Chatham to terminate upon “[t]he occurrence of any condition, change or development that could reasonably be expected to have a material adverse effect on the business, assets, liabilities (actual or contingent), or operations, condition (financial or otherwise) or prospects of” the entities subject to the Fixed/Floating Transaction. Mr. Beilinson stated: “Throughout our restructuring process, Innkeepers has maintained normal business operations at all of its properties, including the completion of all property improvement work on time and under budget as well as having successfully maintained its supportive relationships with its franchisors. Cerberus/Chatham cannot dispute this fact and cannot support any argument that recent volatility in the global markets has negatively impacted the 64 hotels subject to the Fixed/Floating Transaction.”
The Company has also begun evaluating all of its options with respect to the hotels subject to the Fixed/Floating Transaction, including a process to re-market the 64 hotels over the course of the next few months.
About Innkeepers USA Trust
Innkeepers USA Trust is a real estate investment trust and a leading owner of upscale and extended-stay hotel properties throughout the United States. The company currently owns interests in 64 hotels with approximately 8,300 rooms throughout the United States.