-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KBFBNkatNCROxEDE7RrlpU6BO/6taANSCSDpVxPLF4tPqIOTs4sk4dDgfYX1Xlto 6Do6euW+Ze3OZlYjX0s/tg== 0000950134-06-000847.txt : 20060120 0000950134-06-000847.hdr.sgml : 20060120 20060120163511 ACCESSION NUMBER: 0000950134-06-000847 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060113 ITEM INFORMATION: Termination of a Material Definitive Agreement FILED AS OF DATE: 20060120 DATE AS OF CHANGE: 20060120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PMC COMMERCIAL TRUST /TX CENTRAL INDEX KEY: 0000908311 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 756446078 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13610 FILM NUMBER: 06541176 BUSINESS ADDRESS: STREET 1: 17950 PRESTON RD STREET 2: SUITE 600 CITY: DALLAS STATE: TX ZIP: 75252 BUSINESS PHONE: 972-349-3200 MAIL ADDRESS: STREET 1: 17950 PRESTON RD STREET 2: SUITE 600 CITY: DALLAS STATE: TX ZIP: 75252 8-K 1 d32205e8vk.htm FORM 8-K e8vk
 

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): January 13, 2006
Commission File Number           1-13610
PMC COMMERCIAL TRUST
(Exact name of registrant as specified in its charter)
     
TEXAS   75-6446078
(State or other jurisdiction
of incorporation or organization) 		  (I.R.S. Employer Identification No.)
     
17950 Preston Road, Suite 600, Dallas, TX 75252   (972) 349-3200
     
(Address of principal executive offices)   (Registrant’s telephone number)
Former name, former address and former fiscal year, if changed since last report: NONE
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

 

Item 1.02 Termination of a Material Definitive Agreement
     On January 13, 2006, PMC Commercial Trust (“PCC”) received rejection notices on the 12 individual property leases between PCC and Arlington Inns, Inc. (“AII”), a subsidiary of Arlington Hospitality, Inc. (“AHI”). These properties were the subject of a sale and leaseback transaction commencing in 1998 in which PCC purchased the properties from AHI and then leased the properties back to AII. AHI filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on August 31, 2005. AHI is the guarantor for obligations due from our tenant, AII, which filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code on June 22, 2005. As a result of the rejection of the leases, PCC has now taken possession of the hotel properties.
     Following the lease rejection, we sold one of the hotel properties with a net book value of approximately $1.3 million for approximately $2.3 million. We financed the sale through origination of a loan of approximately $1.9 million with an interest rate of LIBOR plus 4% and an amortization period and term of 20 years. As a result of the lease rejection, PCC has hired third party management companies to operate the remaining hotel properties. PCC, as a real estate investment trust, cannot directly operate hospitality properties.
     It is our intention to sell the properties in an orderly and efficient manner. As a result of the AHI and AII bankruptcies, we own 14 hotel properties which are operated by third party management companies. Management believes that we will sell ten of the hotel properties within the next year, although no assurances can be given that we will be able to do so.

 

 

SIGNATURE
    Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: January 20, 2006
         
  PMC COMMERCIAL TRUST
 		  
  By:   /s/ Barry N. Berlin    
    Barry N. Berlin,    
    Chief Financial Officer   
 

 

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