Pliant Systems to File Voluntary Petition for Chapter 11 Bankruptcy Protection

Apr 30, 2001, 01:00 ET from Pliant Systems Inc.

    RESEARCH TRIANGLE PARK, N.C., April 30 /PRNewswire/ --
     Pliant Systems Inc. (OTC Bulletin Board:   PLNS) announced today that it
 intends to seek Chapter 11 protection in the U.S. Bankruptcy Court for the
 Eastern District of North Carolina in order to facilitate an orderly sale of
 substantially all of its business and assets to a third party.  Although
 discussions continue with several possible buyers, no agreement has been
 reached with any buyer.  The company expects that in the current environment
 the proceeds from any sale of assets will not be sufficient to repay the
 $115 million of convertible notes that will become due May 15, 2001.
     In connection with the prospective filing, the company is also
 restructuring its current operations in order to reduce its monthly operating
 expenses.  Although cost cuts will be made across all departments of the
 company, the company will preserve all operating functions and intends to
 continue to provide service to all of its customers without interruption until
 the sale is closed.
     The company believes that Chapter 11 protection is critical to the
 company's ability to effect an orderly and timely sale of assets and continue
 to maintain current customer relationships.  Inquiries into the sales process
 can be directed to William Q. Derrough or M. Kent Warner of Jefferies and
 Company Inc., the company's financial advisor, at 212-284-2550.
 
     About Pliant Systems
 
     Pliant Systems Inc. designs, manufactures and markets integrated multi-
 service access platforms for the telecommunications industry.  The company
 provides incumbent local exchange carriers and competitive local exchange
 carriers with integrated access systems capable of delivering voice, data and
 video services over diverse network topologies.  The company's primary
 product, the Pliant 3000 Integrated Access Platform, is designed to relieve
 the strain on digital loop carrier systems caused by the Internet explosion,
 utilizing a distributed architecture to deliver traditional telephony and
 emerging high-bandwidth services deep into the access network.  The company's
 web site is www.pliantsystems.com.
 
     This press release contains forward-looking statements about the company's
 performance.  Forward-looking statements contained in this release include
 statements about a possible future sale of the company's assets, the seeking
 of protection under Chapter 11, cost cuts, preservation of operating functions
 and the providing of service to customers.  This release also contains
 forward-looking statements about possible buyers of the company's assets and
 repayment of the $115 million in convertible notes.  Any forward-looking
 statements contained in this release reflect management's current expectations
 or beliefs.  However, the outcome of forward-looking statements are beyond the
 ability of the company to control and in many cases could cause actual results
 to differ materially from those indicated by the forward-looking statements.
 The company's Form 10-K, 10-Qs and other documents on file with the Securities
 and Exchange Commission identify important factors that could cause actual
 results to differ materially from those indicated by forward-looking
 statements.  We undertake no obligation to update publicly any forward-looking
 statements as a result of new information, future events or otherwise, unless
 required by law.
 
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                http://tbutton.prnewswire.com/prn/11690X81259001
 
 

SOURCE Pliant Systems Inc.
    RESEARCH TRIANGLE PARK, N.C., April 30 /PRNewswire/ --
     Pliant Systems Inc. (OTC Bulletin Board:   PLNS) announced today that it
 intends to seek Chapter 11 protection in the U.S. Bankruptcy Court for the
 Eastern District of North Carolina in order to facilitate an orderly sale of
 substantially all of its business and assets to a third party.  Although
 discussions continue with several possible buyers, no agreement has been
 reached with any buyer.  The company expects that in the current environment
 the proceeds from any sale of assets will not be sufficient to repay the
 $115 million of convertible notes that will become due May 15, 2001.
     In connection with the prospective filing, the company is also
 restructuring its current operations in order to reduce its monthly operating
 expenses.  Although cost cuts will be made across all departments of the
 company, the company will preserve all operating functions and intends to
 continue to provide service to all of its customers without interruption until
 the sale is closed.
     The company believes that Chapter 11 protection is critical to the
 company's ability to effect an orderly and timely sale of assets and continue
 to maintain current customer relationships.  Inquiries into the sales process
 can be directed to William Q. Derrough or M. Kent Warner of Jefferies and
 Company Inc., the company's financial advisor, at 212-284-2550.
 
     About Pliant Systems
 
     Pliant Systems Inc. designs, manufactures and markets integrated multi-
 service access platforms for the telecommunications industry.  The company
 provides incumbent local exchange carriers and competitive local exchange
 carriers with integrated access systems capable of delivering voice, data and
 video services over diverse network topologies.  The company's primary
 product, the Pliant 3000 Integrated Access Platform, is designed to relieve
 the strain on digital loop carrier systems caused by the Internet explosion,
 utilizing a distributed architecture to deliver traditional telephony and
 emerging high-bandwidth services deep into the access network.  The company's
 web site is www.pliantsystems.com.
 
     This press release contains forward-looking statements about the company's
 performance.  Forward-looking statements contained in this release include
 statements about a possible future sale of the company's assets, the seeking
 of protection under Chapter 11, cost cuts, preservation of operating functions
 and the providing of service to customers.  This release also contains
 forward-looking statements about possible buyers of the company's assets and
 repayment of the $115 million in convertible notes.  Any forward-looking
 statements contained in this release reflect management's current expectations
 or beliefs.  However, the outcome of forward-looking statements are beyond the
 ability of the company to control and in many cases could cause actual results
 to differ materially from those indicated by the forward-looking statements.
 The company's Form 10-K, 10-Qs and other documents on file with the Securities
 and Exchange Commission identify important factors that could cause actual
 results to differ materially from those indicated by forward-looking
 statements.  We undertake no obligation to update publicly any forward-looking
 statements as a result of new information, future events or otherwise, unless
 required by law.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X81259001
 
 SOURCE  Pliant Systems Inc.