My letter to the judge, mailed yesterday. I hope he at least gets to see it before making his ruling:
The Honorable Joseph H. Farnan Jr.
United States District Judge
United States Bankruptcy Court
Federal Building
Wilmington, DE 19801-3577
Atten.: Case No. 98-1765(JJF)
Sept. 22, 1998
Judge Farnan:
One reason CAI Wireless investors were so dumbfounded by the company's filing for Chapter 11 reorganization is that we knew FCC approval of two-way digital services communications for CAI's MMDS technology was imminent. Sure enough, that approval occurred on Sept. 17, 1998. We believed this FCC approval would significantly raise the value of CAI's MMDS spectrum and the value of our stock.
On Sept. 17, CAI's stock, to be "extinguished" in the reorganization plan and considered essentially worthless, traded at two cents. On Sept. 21, the stock reached a high of twelve cents and closed at ten cents. (See enclosed stock chart). With this reorganization plan, CAI management have positioned themselves to profit handsomely, while the stockholders are left with nothing. The FCC ruling demands a new valuation for CAI's MMDS spectrum!
In its 8-K filed on July 2, 1998, CAI said the following:
Note G B Investment in CS Wireless
In a liquidation scenario, the value of the CS Wireless equity stake was assumed to be nominal.
And yet, on Sept. 8, the Dallas Morning News ran an article of more than 1,000 words highlighting CS Wireless' high-speed Internet product, The Beam. The article by Doug Bedell says: "The multimillion-dollar local kickoff of the service, expected in the next few months, is part of the computer world's longstanding effort to shed its dependence on the hard wire. In Dallas, The Beam uses microwave towers connected to the Internet to soar, unfettered, to your eaves."
The Beam is featured in a three-quarter-page advertisement in the September issue of
Dallas/Fort Worth Current Technology. The ad describes how The Beam is wired into a new upscale apartment complex, AMLI on the Parkway, providing "High Speed Wireless Internet." The magazine also features a brief article which says, "The Beam, which is a subsidiary of CS Wireless, is holding the wireless world captivated."
Does CS Wireless really hold just "nominal value"?
Please act in the best interests of shareholders. Remove CAI's current management and preserve our existing shares in CAI Wireless.
Sincerely,
Ken Turetzky
Articles enclosed:
1. CAWS stock chart dated Sept. 21, 1998.
2. Article by Doug Bedell, Dallas Morning News, dated Sept. 8, 1998. "Microwave towers speeding Net service."
3. Federal Communications Commission news release, dated Sept. 17, 1998. "Two-way digital ITFS and MDS communications approved; new services, faster Internet access available for consumers."
4. Reuters article, dated Sept. 17, 1998. "Two-way use approved for older wireless spectrum band."
5. Associated Press article, dated Sept. 17, 1998. "Wireless Cos. Internet Access OKd."
6. Wireless Communications Association International news release, dated Sept. 17, 1998. "FCC Decision Permits Two-Way MDS/ITFS Broadband." |
