UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: June 3, 2005
(Date of earliest event reported)
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ARLINGTON HOSPITALITY, INC.
(Exact name of registrant as specified in its charter)
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Delaware 0-15291 36-3312434
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation) Identification No.)
2355 South Arlington Heights Road
Suite 400
Arlington Heights, Illinois 60005
(Address of Principal Executive Offices)
(847) 228-5400
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
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Exchange Act (17 CFR 240.13e-4(c))
ITEM 8.01 - OTHER EVENTS
As previously disclosed, on May 20, 2005, PMC Commercial Trust and
certain of its subsidiaries ("PMC") filed a lawsuit against us and our
subsidiary in the District Court of Collin County, Texas, 296th Judicial
District (the "Court"), Cause No. 296-1673-05 seeking a temporary restraining
order be entered against us and our subsidiary and seeking payment of past due
rent for the 18 hotels leased by our subsidiary from PMC and current payment of
real estate taxes for 12 of the 18 hotels leased from PMC. The temporary
restraining order was granted ex parte on May 20, 2005. On June 3, 2005, the
Court entered a temporary injunction. The injunction, among other things,
restrains us from using income from the 18 leased hotels without PMC's prior
approval except for the payment of normal operating expenses associated with the
18 leased hotels.
Additionally, on June 3, 2005, we relinquished possession to PMC of a
leased hotel located in McKinney, Texas and on June 6, 2005, we relinquished
possession to PMC of a leased hotel located in Storm Lake, Iowa.
We have been involved in discussions with PMC in an effort to settle
the litigation but, to date, no agreement has been reached. We believe that our
recent proposals to PMC provide reasonable terms for a settlement and better
than PMC would do under other possible scenarios including reorganization. We
intend to continue meaningful discussions with PMC, provided that PMC remains
willing to continue negotiations.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DATE: June 8, 2005
Arlington Hospitality, Inc.
(Registrant)
By: /s/ Stephen K. Miller
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Stephen K. Miller
Interim Chief Executive Officer
By: /s/ James B. Dale
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James B. Dale
Senior Vice President and
Chief Financial Officer