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PEACHTREE FIBEROPTICS, INC. ANNOUNCES MANAGEMENT AND BOARD RESIGNATIONS, CESSATION OF CURRENT OPERATIONS, AND ENGAGEMENT OF MANAGEMENT CONSULTANT

 NORCROSS, Ga., Nov. 2 /PRNewswire/ -- Peachtree FiberOptics, Inc. (NASDAQ: PFII; BSE: PFI) announced today that it has ceased current operations and has received the resignations of its senior management and all members of its board of directors, effective on Oct. 27, following the company's engagement of Genesis Partners, Inc., as a management consultant to evaluate the company's current condition and determine an appropriate course of action.
 The company, which had been experiencing severe cash flow difficulties for several months, no longer had funds to continue operations while it searched for new sources of investment capital to finance completion of its development of commercially viable plastic optical fiber. Management and the board had come under increasing pressure during recent months from the financial community and certain of the company's shareholders; the resignations were in response to those pressures.
 In addition to engaging Genesis Partners, the outgoing board elected Sidney Levine as a director of the company. Levine has agreed to serve as a director, in order to avoid leaving the company without a board of directors, until other vacancies on the board can be filled pursuant to a special shareholders meeting or otherwise as permitted by Delaware law. The company has ceased current operations, however, and does not presently expect to resume operations pending its receipt of the evaluation by Genesis Partners.
 Florida-based Genesis Partners has begun evaluation of the company, and a representative of that firm stated that the first tasks are to stabilize the company's relationships with its creditors (certain of whom have filed lawsuits against the company), to protect the company's interest in its proprietary processes for the production of plastic optical fiber (the company has been granted one patent and has another patent application pending with respect to certain of its processes), and to reposition the company as a possible candidate for acquisition or investment by a business with existing operations, in an effort to preserve value for the company's stockholders.
 In connection with their resignations, the company's senior management and directors agreed to cooperate with Genesis Partners in structuring an orderly handling of the company's affairs. The company, in turn, agreed to forgive their respective financial obligations to the company and to vest immediately all shares of restricted stock and stock options held by them at the time of their resignations. According to company records, such financial obligations totaled approximately $50,000, the company waived its right to repurchase, at par value, from such persons an aggregate of 325,600 shares of company common stock (representing 10.5 percent of the company's 3,090,000 outstanding shares on that date) and such persons became vested in stock options to purchase an aggregate of 160,000 additional shares of common stock at a price of $2.25 per share.
 Peachtree FiberOptics was formed in February 1992 to engage in the production and sale of "step index" and "graded index" plastic optical fiber using proprietary manufacturing processes it had acquired or developed.
 -0- 11/2/93
 /CONTACT: Leonard J. Sokolow, president and CEO, Genesis Partners, 407-338-2668/
 (PFII)


CO: Peachtree FiberOptics, Inc.; Genesis Partners, Inc. ST: Georgia, Florida IN: SU:

BR-RA -- AT011 -- 9763 11/02/93 15:37 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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