Innkeepers, Cerberus In Suit Over Deal Exit

Innkeepers USA Trusthas filed a lawsuit againstCerberus Capital Managementafter the private equity firm abandoned a $1.12 billion acquisition deal,The Wall Street Journalreports. 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 partnerChatham 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.

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