Audit Casts Doubt Over Lodgian's Future

ATLANTA-Locally based Lodgian Inc. says a report by its accounting firm raises substantial doubt about the company’s ability to continue as a going concern. The independent hotel owner and operator included the report in its 2009 10-K annual report filed this week with the Securities and Exchange Commission.

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.”