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Sharicom 2005 News Releases

 

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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.

 

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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 http://www.sharicom.com/press.

 

 

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