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 22, 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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ITEM 8.01 - OTHER EVENTS
On June 22, 2005, our wholly owned subsidiary, Arlington Inns, Inc.
(the "Debtor"), filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (the "Bankruptcy Code") with the United States
Bankruptcy Court for the Northern District of Illinois (the "Bankruptcy Court").
The Debtor's sole business presently consists of the operations of 15 AmeriHost
Inn hotels pursuant to leases with PMC Commercial Trust and its affiliates
("PMC"). The Debtor remains in possession of its assets and properties, and
continues to operate its businesses and manage its properties as
debtors-in-possession under the jurisdiction of the Bankruptcy Court and in
accordance with the applicable provisions of the Bankruptcy Code.
Debtor currently operates 15 Amerihost Inn hotels pursuant to leases
with PMC. As previously announced, PMC filed a lawsuit against Debtor and us
seeking payment of past due rent for 18 leased hotels and current payment of any
past due real estate taxes for these leased hotels. As of the date of the
Debtor's filing with the Bankruptcy Court, Debtor has paid a significant amount
of the past due real estate taxes. Also as of the date of the Debtor's filing
with the Bankruptcy Court, Debtor and PMC have terminated two of the 18 leases
pursuant to the sale of the related hotels by PMC to third parties, which sales
were facilitated by Debtor. Debtor relinquished possession of one of these
hotels prior to the sale. In addition, Debtor has relinquished possession of one
other hotel, and, therefore, Debtor currently remains in possession of 15 leased
hotels.
PMC has filed various eviction proceedings seeking to obtain possession
of the remaining 15 leased hotels. The filing of the reorganization proceeding
by Debtor will stay the eviction proceedings and the litigation proceedings
filed against Debtor. However, PMC may proceed with litigation filed against us,
as guarantor of Debtor's obligations under the PMC leases.
The Debtor has been actively pursuing a settlement with PMC, including
the presentation of proposals by the Debtor that provided PMC substantial
consideration in return for such settlement. PMC has rejected all of the
Debtor's proposals. We believe PMC would receive more under such proposals,
compared to what PMC will receive in the Debtor's Chapter 11 reorganization.
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 22, 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