Lodgian Completes Financial Revamp

Lodgian Inc., an Atlanta-based owner and operator of hotel property, has announced the completion of an $80 million financing that brings 18 of its hotels out of bankruptcy.The company, which emerged from bankruptcy in November 2002, also announced that W. Thomas Parrington, a member of its board of directors, has been named interim chief executive officer. The proceeds of the two-year financing were used to settle a loan for the hotels, owned by Lodgian subsidiaries Impac Hotels II LLC and Impac Hotels III LLC, which filed for Chapter 11 bankruptcy protection in December 2001. The loan, underwritten by Lehman Brothers Holdings Inc., has a one-year extension option at a rate of 525 basis points over the London interbank offered rate (but with a floor of 7.25%), Lodgian said. Mr. Parrington is a 30-year veteran of the hospitality industry who replaces David E. Hawthorne. Mr. Hawthorne is leaving Lodgian and has resigned from its board now that the company has completed its court-approved reorganization plan, Lodgian said. The company can be found online at http://www.lodgian.com.