The Eldridge Hotel’s bankruptcy filing should help clarify the future for the downtown landmark.

A bankruptcy filing usually isn’t viewed as a positive development for a business, but Monday’s bankruptcy filing by the owners of the Eldridge Hotel may be the first step toward putting this historical structure on the road to recovery.

Eldridge House Investors, L.P., is seeking Chapter 11 bankruptcy protection for the downtown landmark. The filing is an effort to give the business a chance to work on its finances and pay off more than $1 million in debt. It is known that the Mid-American Bank in Baldwin has begun foreclosure proceedings on the hotel after it missed payments on a $1.3 million loan. As of September the hotel also owed about $160,000 to the Internal Revenue Service and has other unpaid state and local taxes.

The first advantage of the filing is that it will stall attempts by creditors to collect those debts. That will allow the hotel to continue to operate without the threat of its cash on hand being raided, as the Kansas Department of Revenue already has done twice, to repay debts.

The other positive of the filing is that the federal bankruptcy court now will be able to determine whether the current owners of the Eldridge can put together a viable plan to repay their debts and get the hotel back on a firm financial footing.

Rob Phillips, the general manager and majority shareholder of the Eldridge, has said the hotel is a victim of the downturn in the hospitality industry following the 9-11 attacks and that the business is about to turn around. Although he is not specific about his business strategy, he continues to say plans are in the work.

The size of the Eldridge debt makes it seem unlikely that the business could recover without the infusion of new money. If the owners of the Eldridge are able to put together a reorganization plan that satisfies the bankruptcy court, it might be easier to attract additional investment.

If the Eldridge owners fail to produce a satisfactory Chapter 11 plan in court, the future of the hotel becomes less certain, but it would seem more likely that future could include a change in ownership.

The Eldridge is a private business, but the Lawrence public also has a special interest in the future of the hotel, which is listed on the National Register of Historic Places. It’s unfortunate that the hotel has fallen on hard times, but the bankruptcy filing has the silver lining of bringing the hotel’s troubles to a head so they can be dealt with by the current owners or someone else.