Innkeepers USA Trust seeks bankruptcy protection

Innkeepers USA Trust filed for Chapter 11 bankruptcy protection Monday, outlining a plan that would give one of the extended-stay hotel operator's major creditors substantially all of the equity in the company.

The real estate investment trust listed more than $1 billion in assets and liabilities, according to documents filed with the U.S. Bankruptcy Court in the Southern District of New York.

The company owns 72 hotels in 19 states and the District of Columbia.

Under the terms of Innkeepers' proposed reorganization plan, $238 million senior loans held by Lehman ALI Inc., a unit of Lehman Brothers Holdings Inc., would be converted to equity.

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