Doesn't look undervalued any more. This apparently was a lightning bolt from the sky...
Thursday July 5, 11:07 pm Eastern Time
Press Release
SOURCE: IVG Corp.
IVG Subsidiary, SES, Announces Suspension of Bank Accounts
HOUSTON, July 5 /PRNewswire/ -- IVG Corp. (OTC BB: IVGG) ( ivgcorp.com ) today announced that its wholly owned subsidiary, SES-Corp., Inc. -- one of the largest full service Professional Employer Organizations (PEOs) in the United States -- has had three of its 15 banking relationships suspended, and that accounts at a fourth bank will be closed next week.
At the close of business on June 27th, 2001, representatives of Michigan National Bank (MNB) notified SES that all electronic banking activity in its accounts would be immediately suspended due to concerns with fund clearance and suspicious overdraft activities. At the time of the suspension, SES accounts at MNB were overdrawn by approximately $30 to $32 million. SES and MNB are attempting to negotiate a resolution with respect to any debt that may be outstanding as a result of the overdrafts.
Following the actions of MNB, Citizens National Bank and Bank of America have taken similar action. In addition, Bank One has advised SES that its accounts will be closed next week.
To protect the interests of its clients and worksite employees, SES has redirected its electronic and paper banking transactions to existing, as well as newly-established, banking relationships to handle all payroll processing. SES is continuing to provide service to its clients, despite this substantial interruption.
``Given the favorable history of our relationship with the Michigan National Bank over the past nine years, we are extremely disappointed with the nature of their actions,'' stated President and CEO of SES, Mr. Dennis Lambka. ``SES maintains accounts with over a dozen banks nationwide, and because of the nature of the PEO business, millions of dollars are deposited and paid out of SES accounts every week. The measures taken by Michigan National were initiated with insufficient notice, particularly where the bank has honored similar overdrafts in the past years by SES without incident.
``Fortunately, by utilizing our accounts at other banks we have begun to take the decisive measures necessary to resolve any inconvenience for our clients. The recent events have nevertheless severely strained our relationship with Michigan National and interfered with our ability to provide core PEO services to our clients, which include payroll administration, workers' compensation and healthcare.''
IVG Corp. is actively investigating this situation, and will do what's best to protect the long-term value of its business while maintaining SES' leadership in the market.
IVG Corp. also announced that Mr. Eden Kim, the Chairman of the Board and Secretary of IVG, and Mr. Patrick Walden, a Director and the Chief Financial Officer of IVG, have resigned their positions as Directors of IVG following the actions of Michigan National Bank. Mr. Kim continues to serve as the President and CEO, and as a Director of Swan Magnetics, Inc., one of IVG's portfolio companies. Mr. Walden also submitted his resignation as IVG's CFO effective October 1st, 2001.
About SES-Corp., Inc.
SES ( sesworks.com ) is one of the largest full service Professional Employer Organizations in the United States. Founded in 1989, SES offers small and medium-sized businesses comprehensive management services for the daily administration of human resources and employer obligations. These professional services include payroll and benefits administration, compliance management, medical and workers' compensation insurance programs, unemployment insurance and claims administration, recruiting and placement services, and training and supervisory development services. Headquartered in Auburn Hills, Michigan, SES currently has 11 offices in 9 states, with operations in 42 states servicing over 2,700 clients and more than 32,000 worksite employees nationwide. SES is wholly owned by IVG Corp.
About IVG Corp.
IVG Corp. acquires and enhances revenue-generating companies with a compelling business model, technology and/or proprietary service. IVG Corp. provides a value-added corporate structure intended to enable its portfolio companies to quickly leverage their expertise and deploy their business strategy by utilizing the management, financial and corporate resources of the Company. IVG Corp. currently trades on the NASD OTC Bulletin Board under the symbol IVGG.
Safe Harbor Statement: This press release includes forward-looking statements, including statements relating to SES' ability to maintain Or establish new banking relationships, to continue to provide services to its clients, to negotiate a resolution of its debt to its banks, and to retain existing clients. These statements are made under the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, among others: risks relating to the ability of SES management to maintain or establish new banking relationships and to negotiate a resolution of its debt to its banks; the ability of IVG Corp. management to successfully accomplish fund raising activities, the ability to achieve or sustain profitability; limited operating history; possible financing needs; risks associated with identifying and completing acquisitions; risks associated with the integration of acquired technologies, operations and personnel; risks of being deemed an investment company; exposure to unforeseen liabilities of acquired companies; the requirement to record additional future operating costs for the amortization of goodwill and other intangible assets, which amounts could be significant; business conditions in the PEO, e-commerce and Internet industries generally; the impact of market competitors and their product; and service offerings; and the economic, competitive, governmental, technological and other factors identified in IVG Corp.'s filings with the Securities and Exchange Commission. These factors are described in further detail in IVG Corp.'s filings with the Securities and Exchange Commission, available online at <http://www.freeedgar.com>.
Corporate Contact Investor and Media Relations
IVG Corp. Mindshare Communications
Mr. Richard Twardowski Mr. Anthony Zelen
(281) 295-8400 Toll Free: (888) 301-6788
Email: richard@ivgcorp.com Fax: (604) 806-3367
Web: www.ivgcorp.com Email: ivgg@mindsharecommunications.com
SOURCE: IVG Corp. |
