Innkeepers joins failed LBO list

August 23, 2011, 7:43 PM UTC

Cerberus Capital Management and Chatham Lodging Trust (CLDT) yesterday terminated their $1.1 billion agreement to buy 64 hotels owned by bankrupt Innkeepers USA Trust. Seems the firms believed that a material adverse change (MAC) clause had been tripped.

It’s been a while since we’ve been a large leveraged buyout collapse  but this is hardly the first (or most prominent) time. Here are the five-largest North American LBOs to collapse since 2007, courtesy of Thomson Reuters:

1. Bell Canada (2007): $46 billion by Ontario Teachers Pension Plan, Madison Dearborn and Providence Equity Partners.

2. Sallie Mae (2008): $25 billion by J.C. Flowers, Friedman Fleischer & Lowe, BoA and J.P. Morgan.

3. Penn National Gaming (2008): $8.7 billion by Fortress Investment Group and Centerbridge Partners

4. Harman International (2007): $8.1 billion by KKR and GS Capital Partners

5. Alliance Data Systems (2007): $7.7 billion by The Blackstone Group