News for the Hospitality Executive
Lodgian Receives Audit Report Identifying Matters that
Doubt About the Company’s Ability to Continue as a Going Concern
ATLANTA, Ga., March 17, 2010 — Lodgian, Inc. (NYSE Amex Equities: 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, 2009 (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 2009 financial statements or to its Form 10-K which was filed with the Securities and Exchange Commission on March 16, 2010.
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
$55.7 million of the company’s mortgage debt is scheduled to mature in
2010. This mortgage debt cannot be extended without the approval
of the loan servicers. The largest facility, the Merrill Lynch Fixed
Rate Pool 1 indebtedness with a current principal balance of $33.9 million,
matures on July 1, 2010. To address this pending maturity, the company
is pursuing opportunities to refinance the maturing mortgage debt.
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.
Cautionary Note Regarding Forward-looking Statements
Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to Lodgian or persons acting on its behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and Lodgian undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.
|Also See:||Lodgian Enters Into Definitive Agreeent to be Acquired by Lone Star for $270 million / January 2010|