Innkeepers reach tentative deal with Cerberus and Chatham

WSJ and Nomura reporting ~$1 billion. Nomura notes this would result in an 18% loss severity - not too shabby in my opinion.

Cerberus and Innkeepers USA Trust reach a settlement - lower execution price

From Bloomberg:

The settlement includes a reduction in the price New York- based Cerberus and Chatham Lodging Trust will pay to acquire Innkeepers, said the people, who didn’t disclose the new price and asked not to be named because the talks are private. The accord, reached after a weekend of negotiations, isn’t final and could still fall apart, said the people, and a final agreement is subject to approval by the U.S. bankruptcy court judge overseeing Innkeepers’ restructuring.

Innkeepers sues Cerberus and Chatham

Dealbreaker - with nice imagery
WSJ - more detail

Innkeepers USA Trust said Cerberus Capital Management LP abandoned a $1.12 billion deal to buy the hotelier as part of a ploy to pay a lower price and must close the transaction or pay "substantial damages."

In a lawsuit filed Monday in a federal bankruptcy court in New York, Innkeepers said the two sides "stood at the goal line" Aug. 5 to consummate the deal when the private-equity firm told the hotel owner it wouldn't close, offering "no explanation." The decision upended plans by Innkeepers to exit bankruptcy protection, where it has been since July 2010.

Cerberus, which had agreed to buy 64 Innkeepers hotels with partner Chatham Lodging Trust, terminated the deal earlier this month, saying a "material adverse effect" had occurred that gave it permission to walk away. The buyout firm has since asked for a $20 million deposit on the deal to be returned.