79 Lodgian Hotels Exit Ch. 11; 18 Still Protected

ATLANTA-Lodgian Inc. and most of its subsidiaries are out of Chapter 11 today after voluntarily filing for protection under the United States Bankruptcy Code on Dec. 5, 2001. Lodgian had listed total assets of $1 million and debt of $968.7 million.

Merrill Lynch Mortgage Lending Inc. is providing Lodgian with a $309 million credit facility. During its protection period, Lodgian was operating its hotels largely from a $25 million loan by a New York-based lender group led by Morgan Stanley and Lehman Brothers Inc.

“With our new financing and significantly reduced leverage, Lodgian is well-positioned to benefit from an economic recovery and is committed to increasing shareholder value, going forward,” company president/CEO David E. Hawthorne says in a prepared statement.