ERRICK

PRI:...:CETO\:
VIA HAND DELIVERY
Honorable Shelley C. Chapman, U.S.B.J.
United States Bankruptcy Court for the
Southern District of New York
One Bowling Green
Courtroom 610
New York, New York 10004-1408
November 12,2010
Re: In re Innkeepers USA Trust, et al.
Case No.: 10-13800 (SCC)
SCOTf T. TROSS
PARTNER
Direct Tel: 212.592.1461
Direct Fax: 212.592.1500
Email: stross@herrick.com
LNR Partners, LLC and LNR Securities Holdings, LLC
v. CRES Investment No. II, LP
New York County Index No. 651850110
Dear Judge Chapman:
This firm represents plaintiffs LNR Partners, LLC ("LNR") and LNR Securities
Holdings, LLC ("LNRSH") (collectively "Plaintiffs") in the above-referenced action, which was
commenced in the Supreme Court of the State of New York, County of New York, on
October 27, 2010. In the Complaint (copy enclosed), Plaintiffs seek specific performance of a
Servicer Designation Agreement that requires defendant CRES Investment No. II, LP
("Defendant") to terminate Midland Loan Services, Inc. ("Midland") as Special Servicer for a
securitized $825 million mortgage loan (the "Innkeepers Fixed Rate Loan") and to appoint LNR
as Special Servicer for the Innkeepers Fixed Rate Loan. Alternatively, Plaintiffs seek injunctive
relief, a declaratory judgment and damages.
At the time the action was commenced, Plaintiffs filed an Order to Show Cause
and supporting papers (copy also enclosed) seeking a preliminary injunction enjoining Defendant
from breaching the Servicer Designation Agreement and requiring Defendant to take all actions
necessary to replace Midland with LNR as Special Servicer of the Innkeepers Fixed Rate Loan.
In addition, Plaintiff sought a temporary restraining order preventing Midland from taking any
further action with respect to the Innkeepers Fixed Rate Loan without the consent of LNR.
Following a short argument held on October 28, 2010, the Honorable Ira Gammerman denied
Plaintiffs' request for a temporary restraining order and scheduled a hearing on Plaintiff's
application for a preliminary injunction for November 12, 2010.
I I FRRICJ.<, l'rr"srF!" 1 LP
HERRICK
Hon. Shelley C. Chapman, U.S.B.J.
November 12, 2010
Page 2
On November 10, 2010 -- the date Defendant's opposition papers were due to be
served and filed -- Defendant filed a Notice of Removal in the United States District Court for
the Southern District of New York and requested that the matter be referred to the United States
Bankruptcy Court for the Southern District of New York. We believe that the reference
requested by Defendant will automatically be made and that Plaintiffs' action will be referred to
Your Honor for disposition. Therefore, we write to respectfully request that Your Honor
schedule an in person conference as soon as possible so that the parties can discuss the status of
the action and scheduling.
Thank you for the Court's anticipated courtesy and cooperation.
/\
submitted,
i I rr

Scott T. Tross
cc: Christopher Harris, Esq. (via electronic mail w/o encl.)
Attached Service List (via electronic mail w/o encl.)
SERVICE LIST- INNKEEPERS
Lorenzo Marinuzzi, Esq.
lmarinuzzi@mofo.com
John Penn, Esq.
john. penn@haynesboone. com
Lenard Parkins, Esq.
lenard.parkins@haynesboone.com
Anup Sathy, Esq.
anup.sathy@kirkland.com
Paul Basta, Esq.
paul.basta@kirkland.com
Daniel Donovan, Esq.
daniel.donovan@kirkland.com
Mmiin Bienenstock, Esq.
mbienenstock@dl.com
Irena Goldstein, Esq.
igoldstein@dl.com
Timothy Karcher, Esq.
tkarcher@dl. com
Todd Meyers, Esq.
TMeyers@KilpatrickStockton.com
Mark Fink, Esq.
MFink@KilpatrickStockton.com
David Neff, Esq.
DNeff@perkinscoie.com
Brian Greer, Esq.
brian.greer@dechc1i.com
Michael Sage, Esq.
michael.sage@dechert. com
(212) 698-3503
Alan Kornberg, Esq.
akomberg@paulweiss.com
I :r!'i 1210 ;I!) 127? 1/1 W25110.1
Andrew Ehrlich, Esq.
aehrlich@paulweiss.com
Bonnie Steingmi, Esq.
bonnie. steingmi@fri ed frank. com
Lee Attanasio, Esq.
lattanasio@sidley.com
Adam L. Shiff, Esq.
as hi ff@kaso wi tz. com
Paul Kenan Schwartzberg, Esq.
paul.schwartzberg@usdoj .gov
Lawrence P. Gottesman, Esq.
lawrence.gottesman@bryancave.com
Michelle McMahon, Esq.
michelle.mcmahon@bryancave.com