Cerberus Capital Management is in settlement discussions with Innkeepers USA Trust, The Wall Street Journal reports. As per the talks, Innkeepers, which filed a lawsuit against Cerberus for withdrawing from a deal to buy its hotels, may now sell those properties to Cerberus at a lower price. The deal to buy 64 Innkeepers’ hotels will be subject to approval by the bankruptcy court, which was scheduled to start the three-day trial from Monday. Cerberus and its deal partner, Chatham Lodging Trust, had agreed to buy the Innkeepers hotels for $400.5 million cash and $723.8 million in assumed mortgage debt. The deal was scheduled to be completed on August 5.
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