FiberCore
Inc.
[GRAPHIC OMITTED]
NEWS RELEASE
FOR IMMEDIATE RELEASE
November 17, 2003
FIBERCORE FILES FOR CHAPTER 11 PROTECTION
CHARLTON, MA - NOVEMBER 17, 2003 -- FiberCore, Inc. (FBCE.PK), a leading
manufacturer and global supplier of optical fiber and preform for the
telecommunication and data communications markets, today announced it has
voluntarily filed for protection under Chapter 11 of the U. S. Bankruptcy Code
with the U.S. Bankruptcy Court for the District of Massachusetts, Western
Division, late Friday afternoon, November 14th, as well as various motions,
including a motion for initial DIP financing, today.
The Company's foreign and domestic operating fiber subsidiaries are not involved
in the filing, and the Company, which serves primarily as a holding company,
intends to utilize the Chapter 11 process to restructure its balance sheet,
while continuing to operate its subsidiaries in Germany and Brazil. The Company
trusts that the filing will not impact day-to-day operations of its fiber
subsidiaries.
In support of the restructuring effort, the Company is pursuing breach of
contract claims and other potential recovery situations. Accordingly, the
Company has instituted an adversarial proceeding in excess of $6,000,000 against
CommScope Inc. in bankruptcy court, which we expect will provide an expedited
process.
Mohd Aslami, chairman and chief executive officer of the Company said,
"Unfortunately, the decision to file was unavoidable, given the inability to
raise working capital in the U.S. following the $5.3 million (yen-denominated)
Shin-Etsu arbitration award in late July. Moving forward, we will work with our
lenders, trade creditors, employees, and prospective buyers/investors, which we
believe is in the best interests of all, as we seek to maximize the value of the
business."
FiberCore, Inc. develops, manufactures, and markets single-mode and multimode
optical fiber preforms and optical fiber for the telecommunications and data
communications markets. In addition to its standard multimode and single-mode
fiber, FiberCore also offers various grades of fiber for use in laser-based
systems, to help guarantee high bandwidths and to suit the needs of Feeder Loop
(also known as Metropolitan Area Network), Fiber-to-the Curb, Fiber-to-the-Home,
and Fiber-to-the Desk applications. Manufacturing facilities are presently
located in Jena, Germany and Campinas, Brazil.
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For more information about the company, its products, or shareholder information
please visit our Website at: www.FiberCoreUSA.com or contact us at: Phone -
508-248-3900 or by FAX - 508-248-5588 or E-Mail: sales@FiberCoreUSA.com;
investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this press
release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of risks
and uncertainties. Actual results may differ materially from those projected as
a result of certain general economic and business conditions; loss of market
share through competition; introduction of competing products by other
companies; changes in industry capacity; pressure on prices from competition or
from purchasers of the Company's products; availability of qualified personnel;
the delivery of an ability to commission new equipment as scheduled; ability to
obtain required financing; dependence on a limited number of raw material
suppliers; the loss or reduced creditworthiness of any significant customers;
the ability of the Company to maintain sufficient debtor-in-possession financing
to fund its expenses during the Chapter XI process; the Company's ability to
obtain court approval with respect to motions in the Chapter XI proceeding; the
ability of the Company to develop, prosecute, confirm, and consummate a plan of
reorganization with respect to the Chapter XI proceeding; risks associated with
third parties seeking and obtaining court approval to terminate or shorten the
exclusivity period for the Company to propose and confirm a plan of
reorganization to appoint a Chapter XI trustee or to convert the case to a
Chapter VII proceeding and other factors detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
CONTACTS:
AT THE COMPANY:
- ---------------
Dr. Mohd A. Aslami, President/CEO
John D. Ronnquist, Interim CFO
508/248-3900
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FIBER OPTICS FOR THE NEXT GENERATION
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253 Worcester Rd o P.O. Box 180 o Charlton, MA 01507 o Tel: (508) 248- 3900
o Fax: (508) 248-5588