Lodgian Inc. is in default on a $45.6 million loan secured by six of its hotels, will turn over one hotel to a lender and continues to make cost cuts.
The Atlanta-based hotel owner and operator said it is negotiating with the lender to extend or modify the $45.6 million loan, which matured Oct. 1, 2009. Unless an agreement is reached soon, Lodgian plans to return the six hotels to the lender to satisfy the debt. Cash flow from the hotels securing the loan is insufficient to meet the related debt service obligations, Lodgian said. The lender can begin foreclosure proceedings, but to date has not.
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