Have you suffered investment losses in Innkeepers USA trust? If so, the attorneys of The White Law Group may be able to assist you in recovering your losses through FINRA arbitration.
Innkeepers USA has been in the news recently because according to thedeal.com they have “finalized its settlement with affiliates of Cerberus Capital Management LP and Chatham Lodging Trust and will sell the company’s 64 hotels to them for $1.02 billion.” This deal is meant to satisfy creditors and move the Innkeeper’s bankruptcy restructuring plan forward.
Innkeepers executive Marc Beilinson told thedeal.com that “We are very pleased with this outcome…The updated agreement provides a significant cash premium to the original stalking-horse bid and a meaningful return to our creditors, and it allows us to move ahead with a timely exit from Chapter 11.”
This agreement is the latest step in a long road for the embattled REIT. The road to bankruptcy started several years ago after, according to Reuters.com, Innkeepers “…was bought out by Apollo Investment Corp (AINV.O) in 2007 in a $1.5 billion deal.” In April 2010, “Innkeepers said it missed interest payments on some debt and warned that it could miss future payments. It said at the time that it had hired legal and financial advisers to assist it with restructuring.”
The troubles that Innkeepers experienced between 2007 and 2010 were tied closely to industry economic struggles, Reuters noted in 2010 that, “Since 2007 the value of hotels has dropped sharply after businesses and consumers cut down on travel, hurting room rates and escalating vacancies. This has left many owners hard-pressed to pay their mortgages.”
The struggles of the REIT over the past several years appear to have been extremely difficult on investors as the stock price struggled mightily. This was especially apparent between 2007 and 2009 when prices near bottomed out.
While the struggles of the REIT were tied closely to the downturn in real estate, if a financial professional made an improper recommendation that you invest in Innkeepers you may have claim to recover losses through FINRA arbitration.
Brokerage firms have a fiduciary duty to its clients to perform due diligence on any investment prior to offering it for sale to ensure that the investment is appropriate for a client in light of the client’s age, investment experience, and investment objectives.
If you suffered losses of more than $50,000 as a result of your investment in Innkeepers USA Trust and would like to speak to a securities attorney about your potential to recover your investment losses please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.