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Innkeepers, Cerberus In Suit Over Deal Exit

Innkeepers USA Trust has filed a lawsuit against Cerberus Capital Management after the private equity firm abandoned a $1.12 billion acquisition deal.

Innkeepers USA Trust has filed a lawsuit against Cerberus Capital Management after the private equity firm abandoned a $1.12 billion acquisition deal, The Wall Street Journal reports. The buyout firm had previously committed to buy 64 Innkeepers hotels, but later backed out in an attempt to reduce the price.

Cerberus, which planned to acquire the hotels along with partner Chatham Lodging Trust, ended the deal citing a material adverse effect and had demanded that a $20 million deposit be returned. The real estate investment trust is now seeking finalization of the transaction, failing which it may receive $20 million as damages.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Bloomberg.

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