Obtains 30-day extension on mortgage pool, continues negotiations for longer-term solution
Lodgian, Inc. (NYSE Alternext US: LGN) today announced that the company has obtained an extension of the maturity date for the Merrill Lynch Fixed Rate Pool #3 (“Pool #3”). As of July 1, 2009, the principal amount of Pool #3 was $45.7 million. The company and the special servicer for Pool #3 have entered into an extension agreement to extend the maturity date of this indebtedness until August 1, 2009. Given the extension of the maturity date, the company is not in default of the original loan. The company paid no extension fee in connection with this short-term extension. The 30-day extension is intended to provide the parties an opportunity to reach an agreement on a longer-term maturity extension.
The company and the special servicer are currently negotiating a longer-term maturity extension for Pool #3; however, the company can provide no assurances that the parties will reach such an agreement. In the event that the company is unable to achieve a long-term extension of Pool #3, the company expects that anticipated cash flow from the hotels securing Pool #3 may not be sufficient to meet the related debt service obligations and it may be necessary to transfer the properties securing this indebtedness to the lender in satisfaction of the company’s obligations.
Merrill Lynch Fixed Rate Pool #3 Principal balance, as of July 1, 2009 - $45.7 million Properties securing mortgage indebtedness: -- Courtyard by Marriott - Bentonville, AR -- Courtyard by Marriott - Florence, KY -- Holiday Inn Inner Harbor - Baltimore, MD -- Fairfield Inn by Marriott - Merrimack, NH -- Courtyard by Marriott - Abilene, TX -- Crowne Plaza - Houston, TX