Lehman Brothers Holdings Inc. announced today that the transaction has been completed through which its affiliate, Lehman ALI Inc., received a $224 million payout as a secured creditor in connection with the sale of assets of Innkeepers USA Trust and its affiliates to Cerberus Series Four Holdings, LLC, Chatham Lodging Trust and other related parties. This transaction, which was approved by the bankruptcy court on October 21, 2011, is part of the sale of 64 Innkeepers hotels to the Cerberus and Chatham joint venture for more than $1 billion that enables Innkeepers to complete its emergence from bankruptcy.
Jeff Fitts, a managing director at professional services firm Alvarez & Marsal who heads Lehman's real estate group, said: "This transaction delivers significant value to the Lehman estate, is a significant improvement on the original "stalking horse" proposal and ends any further litigation delay. We have been and remain committed to achieving the best value for each of Lehman's assets as the Lehman estate moves toward confirmation of its plan."
Michael Lascher, a managing director in Lehman's real estate group, added: "Our debt position in Innkeepers has been one of the more complex and challenging assets to resolve for the Lehman estate. It is an example of the Estate's ability to achieve successful outcomes in the face of unexpected hurdles. We are pleased to have concluded it in a way that maximizes its value for our creditors."
Lehman ALI was advised by Dechert LLP and Lazard Freres & Co. LLC. Full details on the transaction can be found at www.omnimgt.com/innkeepers.
Contacts:
Lehman Brothers Holdings Inc.
Kimberly Macleod, 646-285-9215
kmacleod@lehmanholdings.com
or
Linden
Alschuler Kaplan Public Relations
Steven Alschuler, 212-575-4545
salschuler@lakpr.com
