Lodgian Receives Audit Report with Going Concern Explanation
March 13 2009 - 4:30PM
PR Newswire (US)
ATLANTA, March 13 /PRNewswire-FirstCall/ -- 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.
About Lodgian 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. For more
information about Lodgian, visit the company's website:
http://www.lodgian.com/. Forward-Looking Statements This press
release may contain forward-looking statements within the meaning
of the federal securities laws. All statements, other than
statements of historical facts, including, among others, statements
regarding Lodgian's future financial position, business strategy,
projected performance, financing needs and ability to extend,
refinance or repay its debt, are forward-looking statements. Those
statements include statements regarding the intent, belief or
current expectations of Lodgian and members of its management team,
as well as the assumptions on which such statements are based, and
generally are identified by the use of words such as "may," "will,"
"seeks," "anticipates," "believes," "estimates," "expects,"
"plans," "intends," "should" or similar expressions.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that actual results may differ
materially from those contemplated by such forward-looking
statements. Many of these factors are beyond Lodgian's ability to
control or predict. Such factors include, but are not limited to,
the effects of regional, national and international economic
conditions, our ability to refinance mortgage debt that matures on
July 1, 2009, competitive conditions in the lodging industry and
increases in room supply, requirements of franchise agreements
(including the right of franchisors to immediately terminate their
respective agreements if we breach certain provisions), our ability
to complete planned hotel dispositions, the effects of
unpredictable weather events such as hurricanes, the financial
condition of the airline industry and its impact on air travel, the
effect of self-insured claims in excess of our reserves and our
ability to obtain adequate insurance at reasonable rates, and other
factors discussed under Item IA (Risk Factors) in Lodgian's Form
10-K for the year ended December 31, 2008. We assume no duty to
update these 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. Contact: Debi
Ethridge Vice President, Finance & Investor Relations (404)
365-2719 DATASOURCE: Lodgian, Inc. CONTACT: Debi Ethridge, Vice
President, Finance & Investor Relations, +1-404-365-2719, Web
Site: http://www.lodgian.com/
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