Innkeepers Exits Bankruptcy after Hotels Sale
Innkeepers USA Trust sad Thursday it had emerged from Chapter 11 bankruptcy, a move which comes after the sale of dozens of its hotels.
"This is a great accomplishment," said Innkeepers' Chief Restructuring Officer Marc A. Beilinson.
Beilinson said issues surrounding commercial mortage backed securities were “effectively resolved” through the process.
The Palm-beach, Florida-based company said it closed a $1.02 billion sale of 64 Innkeepers hotals to an investors’ group that was approved in U.S. Bankruptcy Court, Southern District of New York.
The buyers were private equity firm Cerberus Capital management, L.P. and real estate investment trust Chatham Lodging.
The company said a “substantial majority” of the company’s unsecured creditors are expected to receive a recovery of more than 90 cents on the dollar.
The company currently has 3,500 people who continue to be employed at hotel properties, said Beilinson said.