Wednesday, September 1, 2010

Innkeepers USA gets OK for more DIP financing

The judge's decision overruled the objections of special servicer Trimont Real Estate Advisors Inc, which opposed the additional financing saying that Innkeepers did not need "that kind of leverage."

Lehman ALI, a unit of Lehman Brothers Holdings Inc (LEHMQ.PK) can provide as much as $17.5 million in financing to help fund hotel improvements and pay expenses, said U.S. Bankruptcy Judge Shelley Chapman at a New York hearing. Innkeepers' portfolio includes some Residence Inn and Hampton Inn hotels.

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