The audit report by Deloitte & Touche LLP points to approximately $55.7 million in mortgage debt maturing this year that cannot be extended without the approval of loan servicers. The largest facility, the Merrill Lynch Fixed Rate Pool 1, has a current principal balance of $33.9 million maturing July 1.
"To address this pending maturity, the company is pursuing opportunities to refinance the maturing mortgage debt," Lodgian stated in a release. "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 agreed earlier this year to a $54.2-million buyout offer by an affiliate of Dallas-based Lone Star Funds. The transaction is valued at $270 million, including assumed debt.
Lone Star, which specializes in distressed commercial real estate, is offering $2.50 for each outstanding share of Lodgian stock, which some shareholders argue is priced too low. Lodgian's shares closed Wednesday at $2.48 on the American Exchange, with a 52-week range of $1.15 to $3.20.
Lodgian is one of the largest independent owners and operators of full-service hotels in the US. The company currently owns and manages 28 hotels with 5,359 rooms in 19 states, half of which are flagged by InterContinental Hotels Group brands such as Crowne Plaza and Holiday Inn. (IHG's North American headquarters is also in Atlanta.)
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