CAI's bankruptcy application says several people must receive letters of objection by Aug. 18. Is this true? If so, what is the address for the Office of the United States Trustee? See the following:
>The notice of entry of this Order shall state that any party in interest
objecting to the Postpetition Financing shall file written objections
with the United States Bankruptcy Court Clerk for the District of
Delaware no later than 4:00 p.m. on August 18, 1998, which objections shall be served so that the same are received on or before such date by:
(a) Shearman & Sterling, 599 Lexington Avenue, New York, New York 10022, Attention: Douglas P. Bartner, Esq. and Constance A. Fratianni, Esq,
(b) Skadden Arps, Slate, Meagher & Flom, 919 Third Avenue, New York, New York 10022, Attention: Greg Milmoe, Esq., and Skadden Arps, Slate, Meagher & Flom, 1 Rodney Square, Wilmington, Delaware 19899, Attention: Gregg Galardi, Esq., Attorneys for the Debtors, and
(c) the Office of the United States Trustee.
Such notice shall be deemed good and sufficient for purposes of entry of a final order on the motion. Each of the Debtors irrevocably waives any right to seek any modifications or extensions of this Order other than on prior written notice to MLGAF.<
I sent the following to Judge Farnan, using portions of Zorro's and VanGo's "talking points." I presume Zorro copied all of the detailed attachments from the 8ks, 10ks and other sources, and didn't want to be redundant.
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)
Judge Farnan:
I am a shareholder of CAI Wireless, and I ask that you reject the company's motion for Chapter 11 bankruptcy protection. I believe CAI management misled shareholders about its intentions to develop wireless communications technology, sold shares at great profit immediately following major announcements, and finally, severely undervalued the company's assets while filing for bankruptcy, in order to deny shareholders the right to vote on the company's reorganization plan.
I believe these facts argue against CAI's case and in favor of shareholders who wish to prevent the company from "extinguishing" our shares:
1. CAI Wireless made statements and promises to shareholders that it would deploy services in various markets, but never did so. Specific cases include: Norfolk/Virginia
Beach (video services), Boston (video services, followed by data services) and Pittsburgh (two-way data services). In addition, the company indicated data services would be sold in the Washington, D.C., market and this, too, never materialized. CAI senior management profited by selling $10.5 million of personal shares from May through August, 1996, after making major announcements for systems and technologies they never deployed.
2. The Chapter 11 petition lists assets of $325.6 million and liabilities of $387.3 million. Other telecommunications experts value CAI's assets at $700 million to $1 billion. These higher estimates of asset value are due to more generous estimates of the MMDS spectrum rights that CAI owns. BellSouth, a major regional Bell operating company, is currently marketing MMDS cable TV services in the Southeast. CAI's own subsidiary, CS Wireless, claims it is successfully marketing MMDS-based high-speed Internet service in Dallas, Texas.
3.. Even with the company facing severe financial problems, in August and September 1997, Chairman and CEO Jared E. Abbruzzese loaned up to $5 million of CAI's money to another of his companies, TelQuest Satellite Services, for services that never materialized. He also loaned money to Television Interactiva del Norte, S.A. de C.V. ("Telinor") from Heartland for cash proceeds of $915,000 and assumption of a cash call obligation in the amount of $145,000.
4. Finally, I believe CAI senior management structured this Chapter 11 reorganization to primarily benefit themselves. They maintain their inflated salaries, bonuses and stock options, and even keep the same jobs.
Jared Abbruzzese said this in a conference call with shareholders and investment brokers: "There are a lot of big financial institutions that cozied up to us over the late summer and early fall, who were saying this could be a great restructuring or reorganization, you know, go in, go out, we all make a lot of money...."
Apparently, he thought better of his comment, because the edited transcript, published in 8K form, read:
"There are a lot of big financial institutions that cozied up to us over the late summer and early fall, who were saying this could be a great restructuring or reorganization. [ . . . ] We've resisted that. We've tried to, at all turns, do what [management felt was] right for [CAI's] shareholders and bondholders."
Unfortunately for us, what Mr. Abbruzzese and senior management propose to do with this reorganization plan is to "go in, go out, we all make a lot of money...." I also ask, could Merrill Lynch, a large holder of CAI senior notes, be one of those financial institutions who suggested such a plan?
Please act in the best interests of shareholders. Remove CAI's inept, disreputable senior management and let us replace them with suitable officers. Protect the value of our existing shares in CAI Wireless. |
