Cerberus Capital Management and Chatham Lodging Trust have pulled out of the deal to buy the assets of 66 hotels from bankrupt lodging company Innkeepers USA Trust.

Chatham announced the termination today, saying that it and Cerberus had rescinded their offer “as a result of the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect on Innkeepers’ business, assets, liabilities, operations, condition or prospects.” A Chatham representative was not immediately available for comment.

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