Item 8.01. Other Events.
On July 2, 2009 and July 7, 2009, Lodgian, Inc. (the "Company") announced that it had obtained extensions on an aggregate of $117.3 million of its mortgage indebtedness previously scheduled to mature on July 1, 2009. This indebtedness, which was originated in June 2004 by Merrill Lynch and securitized in the collateralized mortgage-backed securities market, had been divided into three pools of indebtedness referred to by the Company as Merrill Lynch Fixed Rate Pools #1, #3 and #4. (The Company repaid the Merrill Lynch Fixed Rate Pool #2 in 2007.) The Company has reached agreements with the special servicers of this mortgage indebtedness to provide for an extension of the maturity date of Pool #1 to July 1, 2010; an extension of the maturity date of Pool #4 to July 1, 2012; and an extension of the maturity date of Pool #3 to August 1, 2009. In addition, on May 6, 2009, the Company announced that its efforts to sell the Holiday Inn in Phoenix, Arizona have been unsuccessful and that the hotel's operating performance was continuing to decline. The Company has concluded that this hotel's market value is less than the $9.4 million of mortgage indebtedness
(unrelated to the Merrill Lynch Fixed Rate Pool indebtedness described above)
which encumbers the property. Accordingly, the Company ceased making mortgage payments on this indebtedness in May 2009 and began discussions with the lender to return the Holiday Inn property to the lender on a consensual basis. These discussions are ongoing. On June 17, 2009, the Company received notice from its lender that the mortgage indebtedness on the Holiday Inn Phoenix West hotel had been accelerated, as anticipated. This mortgage indebtedness is non-recourse to the Company (except in certain limited circumstances which the company believes do not apply in this case) and is not cross-collateralized with any of the Company's other indebtedness. Since the Company no longer intends to sell this hotel, this property no longer meets the criteria for classification as "held for sale." As a result, the Company will reclassify the property to "held for use" in its second quarter 2009 financial statements.
Copies of the press releases more fully describing the terms and conditions of the transactions and indebtedness described above are attached hereto as Exhibit 99.1 and Exhibit 99.2 and are incorporated herein by reference in their entirety.
Item 9.01. Financial Statements and Exhibits.

(d) Exhibits Exhibit 99.1 Press Release dated July 2, 2009. Exhibit 99.2 Press Release dated July 7, 2009.

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