News for the Hospitality Executive |
30 June 2011 - Innkeepers USA Trust
and its affiliates (the “Company”) today announced that less than a
year after the Company entered Chapter 11, the United States Bankruptcy
Court for the Southern District of New York entered an order confirming
the Company’s chapter 11 plan of reorganization. The Court’s approval
of the plan, which was supported by the Company’s secured lenders and
has been accepted by more than 90 percent of Innkeepers’ unsecured
creditors and shareholders, clears the way for Innkeepers to emerge
from Chapter 11.
Innkeepers’ Chief Restructuring Officer, Marc A. Beilinson said that the reorganization plan confirmed by the Court provides maximum recovery to the Company’s creditors while ensuring the continued viability of the hotel properties. “Ensuring our secured and unsecured creditors would receive the greatest possible recovery, while at the same time preserving the value of the hotel properties, was our key objective as we examined the various restructuring alternatives available. The Plan of Reorganization confirmed today fulfills these goals and is a great result for our creditors, franchisors, guests and employees.” The Company also noted that throughout its restructuring process, Innkeepers has maintained normal business operations at all of its properties, including completing substantial work on the property improvement plans required by franchisors on time and under budget, as well as having successfully maintained its supportive relationships with its franchisors. The Company’s plan of reorganization is the result of an extensive marketing process which increased Innkeepers’ enterprise value by approximately $150 million. Under the terms of the plan:
The Company is working diligently to effectuate the transaction outlined in the plan, including closing the sales transactions to Chatham Lodging and the joint venture. The Company expects that the transactions will close in short order. > Copies of the Court’s confirmation order and other court
documents are available at www.omnimgt.com/innkeepers/ > About Innkeepers USA Trust | Innkeepers USA Trust is a real estate investment trust and a leading owner of upscale extended-stay hotel properties throughout the United States. The company currently owns interests in 71 hotels with approximately 10,000 rooms in 19 states and the District of Columbia.
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Contact: Innkeepers USA Trust www.innkeepersusa.com 306 Royal Poinciana Plaza USA - Palm Beach, FL 33480 Phone: 561-835-1800 Fax: 561-835-0457 Email: [email protected] |