<< Previous :: Next >> By Date :: Top Recent :: Top 30 days :: Top 365 days :: Back

Lodgian Receives Audit Report with Going Concern Explanation

2009-03-16

Send

Text Size:

Lodgian The audit report raised substantial doubt about the company's ability to continue as a going concern because approximately $128 million of the company's mortgage debt is scheduled to mature in July 2009.

Lodgian, Inc. (NYSE Alternext US: LGN) today announced that the audit report of its independent registered public accounting firm, Deloitte & Touche LLP, included in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (the "Form 10-K"), while expressing an unqualified opinion regarding the company's audited financial statements, identified matters which raise substantial doubt about the company's ability to continue as a going concern. The company's announcement does not represent any changes or amendment to its 2008 financial statements or to its Form 10-K which was filed with the Securities and Exchange Commission on March 13, 2009.

As disclosed in the Form 10-K, the audit report raised substantial doubt about the company's ability to continue as a going concern because approximately $128 million of the company's mortgage debt is scheduled to mature in July 2009. This mortgage debt cannot be extended without the approval of the loan servicers, which extension has been requested but not yet granted. To address the pending maturities, the company is also pursuing opportunities to refinance the maturing mortgage debt or to acquire new mortgage debt using currently unencumbered properties. However, in light of the current state of credit markets generally and the real estate credit markets specifically, the company cannot currently predict the outcome of these efforts.

Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently owns and manages a portfolio of 40 hotels with 7,448 rooms located in 22 states and Canada. Of the company's 40-hotel portfolio, 20 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), three are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham, and Carlson. One hotel is an independent, unbranded property, which is currently closed and held for sale.

Logos, product and company names mentioned are the property of their respective owners.