Lodgian Reports Emergence From Chapter 11

ATLANTA—Lodgian, Inc. and the majority of its subsidiaries have successfully emerged from bankruptcy, according to the company, which also reported the funding of a new $309 million credit facility arranged by Merrill Lynch Mortgage Lending, Inc The newly reorganized Lodgian will emerge from bankruptcy with 79 hotels that operate under franchises such as Holiday Inn, Marriott, Hilton and Crowne Plaza. Eighteen hotels will continue under Chapter 11 protection, and the company expects to dispose of nine hotels by the end of first-quarter 2003. David Hawthorne, president/CEO, said the bankruptcy process has enabled the company to substantially reduce its debt and survive a difficult operating environment since the events of 9/11. “While the operating environment remains challenging, we are dedicated to creating value for our shareholders. We would like to thank our franchisors, vendors, lenders and dedicated employees for their support during the restructuring process. 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.”