Innkeepers USA Trust
can keep an agreement to run the Best Western West Palm Beach Airport Inn in West Palm Beach, Florida, preventing a situation the bankrupt company said could harm its ability to reorganize.
U.S. Bankruptcy Judge Shelley Chapman
in Manhattan today barred Best Western International Inc.’s request to end its contract with Innkeepers at the hotel, saying that if she did, defaults could be triggered on Innkeepers’ loans.
“I believe the debtors are entitled to more time to determine what they want to do with this agreement,” Chapman said.
Best Western said the hotel doesn’t meet its requirements for design features such as mandated lobby size and exercise facilities, which it imposes on hotel operators that use its brand. It asked to end Innkeepers’ ability to use its logos, citing damage to its trademark.