Sharicom™ Department of Public Relations (866) SHG-4242
SHARICOM'S BOARD WEIGHS REORGANIZATION POSSIBILITIES
FLORENCE, KY, June 17, 2005 -
Sharicom, Inc. announced today that it was contemplating filing for
bankruptcy protection under the United States Business Code. The
announcement was made by Mr. Paul S. Johnson, Chief Administrative
Officer and Treasurer.
"Sharicom’s board of directors has decided the Company cannot continue
to operate its businesses in the near term under its existing capital
structure and that it would be in the best long-term interests of the
holders of the Company's shares and debt obligations to explore a
possible restructuring (with or without additional capital), sale,
business combination and/or other reorganization transaction which, if
consummated, could result in a change of control of the Company," stated
Paul S. Johnson, Treasurer.
As part of that process, Sharicom may initiate a Chapter 11 bankruptcy
filing, Johnson added. The decision will be made after next week's
board meeting in Lexington, with the assistance of legal counsel.
“The company currently has receivables that total more than
$250,000.00,” stated Johnson. The company has however classified
the entire total to the “Allowance for Doubtful Accounts” line item on
the Uniform System of Accounts. The Allowance for Doubtful
Accounts represents an allowance for the portion of current accounts and
notes receivable estimated to be uncollectible.
Despite its financial woes and shrinking business, the hotel division is
one of the largest hotel operators in the United States, and its
subsidiary, Merus Companies, LTD. provides state-of-the-art web hosting,
design, and productions.
The Company has been struggling to regain its footing for more than a
year, eliminating overhead, and increasing marketing efforts.
During this process the Company has struggled to pay its creditors.
“Recent lawsuits and judgments against the Company could force us into
an involuntary bankruptcy by our creditors,” stated Johnson. “The
Company has insufficient cash reserves to meet demand.”
The Company will announce its intentions on June 20, 2005 after a
meeting of its board of directors.
Note to editors:
Following are some of the trademarks of Sharicom, Inc., its divisions or
affiliates; Sharicom®, Neal Management Corporation™, Sharicom Hotels®, NMC
Sharicom Hotels Group™, Sharicom ATM Network™, Choice Tan & Body™, and Sharicom Travel Management™. Following are
trademarks of Sharicom's subsidiary corporation, Merus Companies, LTD. its
divisions, or affiliates; Merus Press Services™, Merus Web Designs™, and
Merus Productions™. Following are trademarks of Sharicom’s subsidiary
corporation, Ivy Hotels International, Inc. its divisions or affiliates; Hotel
Ivy™, The Hotel Ivy™, Ivy Lodge™ Hotel Ivy Grand™, and Prestigious Guest Club™.
Merus Holdings Group™ is a trademark of Merus Holdings Corporation.
» NMC Sharicom Hotels Group™, a division of Sharicom, Inc. is one of the
nation’s largest hotel companies, ranking # 9 out of the "Top 100 Hotel
Companies for Highest Occupancy," and # 29 for "Gross Sales and Largest
Number of Hotels."
For the latest news from Sharicom, Inc., visit our Press Office at