Saturday, March 14, 2009

Lodgian Receives Audit Report with Going Concern Explanation

ATLANTA, Ga—Lodgian, Inc. (NYSE Alternext US: LGN) announceS 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.

CONTACTS;
Julie Tullbane, Daly Gray Public Relations, T 703-435-6293, F 703-435-6297, julie@dalygray.com

Debi Ethridge, Vice President, Finance & Investor Relations, (404) 365-2719 dethridge@lodgian.com

No comments:

Post a Comment