Hotel owner, Innkeepers USA Trust, has secured the court’s permission to extend its right to submit a plan until March 29, 2011 to exit out of bankruptcy, Reuters reports. In case, Innkeepers does not get another extension, creditors will then execute their own plan for the company.
Innkeepers may run an auction process and has an initial bid of $1.14 billion from Five Mile Capital and Lehman Brothers. The move comes as Innkeepers’ first reorganization plan was not accepted by its creditors. The company got an extension in 2010 as well after having filed for bankruptcy in July of 2010.
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