Lee S.

Attanasio
John G. Hutchinson
Benjamin R. Nagin
SIDLEY AUSTIN LLP
787 Seventh Avenue
New York, NY 10019
Tel: (212) 839-5300
Fax: (212) 839-5599
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
------------------------------------------------------x
In re
:
:
Innkeepers USA Trust, et al.,
:
:
Debtors.
:
------------------------------------------------------x

Chapter 11
Case No. 10-13800 (SCC)
Jointly Administered

VERIFIED STATEMENT OF SIDLEY AUSTIN LLP

PURSUANT TO BANKRUPTCY RULE 2019
Sidley Austin LLP (Sidley) makes the following statement (the Statement) pursuant
to Rule 2019 of the Federal Rules of Bankruptcy Procedure in connection with the abovecaptioned chapter 11 cases of Innkeepers USA Trust, et al. (collectively, the Debtors):
1.

Sidley is a law firm that maintains an office at 787 Seventh Avenue, New York,

New York 10019, and has additional domestic offices in Chicago, Dallas, Los Angeles, Palo
Alto, San Francisco, Seattle, and Washington, D.C.
2.

Sidley currently represents Appaloosa Investment L.P. I, Palomino Fund Ltd.,

Thoroughbred Fund L.P., and Thoroughbred Master Ltd. (collectively, the Appaloosa Funds)
in the Debtors chapter 11 proceedings. Each of the Appaloosa Funds is represented by
Appaloosa Management L.P., as investment advisor. The address for Appaloosa Management,
L.P. and each of the Appaloosa Funds is 51 John F. Kennedy Parkway, 2nd Floor, Short Hills,
New Jersey 07078.

NY1 7561961v.5

3.

As of the date hereof, Appaloosa L.P. I holds 25 preferred shares in Innkeepers

USA Trust (Preferred Shares) and, as set forth in Schedule A hereto, (i) is the owner of certain
certificates in the CMBS Trust called LB-UBS Commercial Mortgage Trust 2007-C6 (the C6
Trust) and in the CMBS Trust called LB-UBS Commercial Mortgage Trust 2007C7 (the
C7 Trust), and (ii) is a Lender under the Senior Secured Super-Priority Debtor-in-Possession
Credit Agreement, dated September 29, 2010, among the Debtors as borrowers and Five Mile
Capital II Pooling International LLC as administrative agent for itself and the other lenders
thereto (the Five Mile DIP Loan).
4.

As of the date hereof, Palomino Fund Ltd. holds 37 Preferred Shares and, as set

forth in Schedule B hereto, is the owner of certain certificates issued by the C6 Trust and by the
C7 Trust.
5.

As of the date hereof, Thoroughbred Fund L.P. holds 18 Preferred Shares and, as

set forth in Schedule C hereto, (i) is the owner of certain certificates issued by the C6 Trust and
by the C7 Trust, and (ii) is a Lender under the Five Mile DIP Loan.
6.

As of the date hereof, Thoroughbred Master Ltd. holds 20 Preferred Shares and,

as set forth in Schedule D hereto, is the owner of certain certificates issued by the C6 Trust and
by the C7 Trust.
7.

As the entity filing this Statement, Sidley does not hold any claims against or

interests in the Debtors.

8.

Sidley reserves the right to revise, supplement and/or amend this Statement.

Dated: February 11, 2011

New York, New York

Respectfully submitted,
SIDLEY AUSTIN LLP

By: /s/ Lee S. Attanasio_____________

Lee S. Attanasio
John G. Hutchinson
Benjamin R. Nagin
787 Seventh Avenue
New York, New York 10019
Telephone: (212) 839-5300
Facsimile: (212) 839-5599
lattanasio@sidley.com
jhutchinson@sidley.com
bnagin@sidley.com

VERIFICATION
Lee S. Attanasio hereby declares under penalty of perjury as follows:
1.

I am a member of the law firm of Sidley Austin LLP, attorneys to: Appaloosa

Investment L.P. I, Palomino Fund Ltd., Thoroughbred Fund L.P., and Thoroughbred Master Ltd.
in the above-captioned bankruptcy cases.
2.

I have read the foregoing Verified Statement of Sidley Austin LLP Pursuant to

Federal Rule of Bankruptcy Procedure 2019 and verify that the statements therein are true and
correct to the best of my knowledge, information and belief.
Dated: February 11, 2010
New York, New York
/s/ Lee S. Attanasio
Lee S. Attanasio

Schedule A
Appaloosa Investment L.P. I
51 John F. Kennedy Parkway, 2nd Floor
Short Hills, New Jersey 07078
C6 and C7 Trust Certificates
Name of Security
LBUBS 2007-C6 AJ

CUSIP
52109PAH8

Class Face
76,850,000

LBUBS 2007-C6 B
LBUBS 2007-C6 E

52109PAJ4
52109PAM7

10,000,000
10,000,000

LBUBS 2007-C6 F
LBUBS 2007-C7 AJ

52109PAN5
52109RBQ3

19,790,000
92,824,000

LBUBS 2007-C7 C

52109RBS9

8,000,000

LBUBS 2007-C7 D

52109RBT7

21,177,000

LBUBS 2007-C7 E

52109RBU4

24,740,000

Appaloosa Face
10,271,000
1,012,000
8,224,000
2,430,000
1,215,000
1,215,000
4,809,000
11,011,000
6,328,000
3,904,000
2,329,000
1,215,000
739,000
1,215,000
729,000
3,248,000
1,215,000
729,000
1,964,000
2,145,000

Date Acquired
05/05/2009
04/15/2010
04/28/2010
12/17/2010
12/13/2010
12/13/2010
08/23/2010
04/17/2009
03/16/2010
04/15/2010
06/16/2010
12/02/2010
02/04/2011
12/02/2010
12/03/2010
02/04/2011
12/02/2010
12/03/2010
01/13/2011
01/20/2011

Five Mile DIP Loan

Tranche
Tranche A Facility
Tranche B Facility
Tranche C Facility

Principal Amount Held

$5,472,452
$469,725
$281,823

Date Acquired
09/29/2010
09/29/2010
09/29/2010

Schedule B
Palomino Fund Ltd.
51 John F. Kennedy Parkway, 2nd Floor
Short Hills, New Jersey 07078

C6 and C7 Trust Certificates

Name of Security
LBUBS 2007-C6 AJ

CUSIP
52109PAH8

Class Face
76,850,000

LBUBS 2007-C6 B
LBUBS 2007-C6 E

52109PAJ4
52109PAM7

10,000,000
10,000,000

LBUBS 2007-C6 F
LBUBS 2007-C7 AJ

52109PAN5
52109RBQ3

19,790,000
92,824,000

LBUBS 2007-C7 C

52109RBS9

8,000,000

LBUBS 2007-C7 D

52109RBT7

21,177,000

LBUBS 2007-C7 E

52109RBU4

24,740,000

Palomino Face
15,012,000
1,485,000
12,066,000
3,568,000
1,784,000
1,784,000
7,061,000
16,092,000
8,982,000
5,729,000
3,418,000
1,784,000
1,072,000
1,784,000
1,070,000
4,707,000
1,784,000
1,070,000
2,847,000
3,111,000

Date Acquired
05/05/2009
04/15/2010
04/28/2010
12/17/2010
12/13/2010
12/13/2010
08/23/2010
04/17/2009
03/16/2010
04/15/2010
06/16/2010
12/02/2010
02/04/2011
12/02/2010
12/03/2010
02/04/2011
12/02/2010
12/03/2010
01/13/2011
01/20/2011

Schedule C
Thoroughbred Fund L.P.
51 John F. Kennedy Parkway, 2nd Floor
Short Hills, New Jersey 07078
C6 and C7 Trust Certificates
Name of Security
LBUBS 2007-C6 AJ

CUSIP
52109PAH8

Class Face
76,850,000

LBUBS 2007-C6 B
LBUBS 2007-C6 E

52109PAJ4
52109PAM7

10,000,000
10,000,000

LBUBS 2007-C6 F
LBUBS 2007-C7 AJ

52109PAN5
52109RBQ3

19,790,000
92,824,000

LBUBS 2007-C7 C

52109RBS9

8,000,000

LBUBS 2007-C7 D

52109RBT7

21,177,000

LBUBS 2007-C7 E

52109RBU4

24,740,000

Thoroughbred
Fund Face
7,371,000
740,000
6,012,000
1,972,000
986,000
986,000
3,902,000
7,901,000
4,743,000
2,854,000
1,703,000
986,000
585,000
986,000
592,000
2,568,000
986,000
592,000
1,553,000
1,696,000

Date Acquired
05/05/2009
04/15/2010
04/28/2010
12/17/2010
12/13/2010
12/13/2010
08/23/2010
04/17/2009
03/16/2010
04/15/2010
06/16/2010
12/02/2010
02/04/2011
12/02/2010
12/03/2010
02/04/2011
12/02/2010
12/03/2010
01/13/2011
01/20/2011

Five Mile DIP Loan

Tranche
Tranche A Facility
Tranche B Facility
Tranche C Facility

Principal Amount Held

$3,320,048
$284,975
$170,977

Date Acquired
September 29, 2010
September 29, 2010
September 29, 2010

Schedule D
Thoroughbred Master Ltd.
51 John F. Kennedy Parkway, 2nd Floor
Short Hills, New Jersey 07078

C6 and C7 Trust Certificates

Name of Security
LBUBS 2007-C6 AJ

CUSIP
52109PAH8

Class Face
76,850,000

LBUBS 2007-C6 B
LBUBS 2007-C6 E

52109PAJ4
52109PAM7

10,000,000
10,000,000

LBUBS 2007-C6 F
LBUBS 2007-C7 AJ

52109PAN5
52109RBQ3

19,790,000
92,824,000

LBUBS 2007-C7 C

52109RBS9

8,000,000

LBUBS 2007-C7 D

52109RBT7

21,177,000

LBUBS 2007-C7 E

52109RBU4

24,740,000

Thoroughbred
Master Face
7,696,000
763,000
6,198,000
2,030,000
1,015,000
1,015,000
4,018,000
8,250,000
4,882,000
2,943,000
1,755,000
1,015,000
604,000
1,015,000
609,000
2,654,000
1,015,000
609,000
1,636,000
1,788,000

Date Acquired
05/05/2009
04/15/2010
04/28/2010
12/17/2010
12/13/2010
12/13/2010
08/23/2010
04/17/2009
03/16/2010
04/15/2010
06/16/2010
12/02/2010
02/04/2011
12/02/2010
12/03/2010
02/04/2011
12/02/2010
12/03/2010
01/13/2011
01/20/2011