Prime To Take $4.5M Charge In Q2

WASHINGTON, D.C.— Prime Hospitality Corp. expects to record a $4.5 million charge for the second quarter because its litigation reserves could not cover damages owed to Sholodge. The Fairfield, New Jersey-based company was ordered to pay $8.9 million to Sholodge at the end of June after breaching the terms of a contract for using Sholodges reservation system. Prime Hospitality said in a filing with the Securities and Exchange Commission that it was reviewing its options to appeal the damages. The hoteliers first-quarter earnings plummeted more than 92%, with net income of $0.02 per share for the three months ended March 31. SOURCE: Reuters