InterNet Bankruptcy Library - News for June 6, 1997

Bankruptcy News For June 6, 1997

  1. Clothestime announces first
            quarter financial results

  3. CAI Wireless Systems, Inc.

  5. Hanover Man Pleads Guilty To Theft Of
            Erisa Funds And Bankruptcy Fraud, Announces Us Attorney's

  7. Phoenix Summus completes reverse
            split; Acquires oil & gas properties

Clothestime announces first quarter
financial results

ANAHEIM, Calif.--June 6, 1997--href="chap11.clothestime.html">The Clothestime Inc.
(NASDAQ:CTMEQ) Friday announced results for the first quarter
ended April 26, 1997.

Sales for the quarter were $42.5 million compared with $43.7
million last year.

Net loss for the quarter was $3.4 million, compared with a net
loss of $5.9 million for the same period last year. Loss per
share was $0.24 compared with a $0.41 loss per share for the same
period last year.

Clothestime Stores currently operates 322 women's apparel
stores in 17 states and Puerto Rico, offering primarily
in-season, moderately-priced sportswear, dresses and accessories,
emphasizing fashion at a discount from department and specialty

                             The Clothestime Inc.
                  Summary Results of Operations
                  (Unaudited) (000's Omitted,
                  Except Per Share Amounts)


                                    April 26,
                                    April 27,

  Net Sales                           $42,482    
         $43,667 Net Loss                        
     $ 3,380            $ 5,852 Loss Per Share   
                    $  0.24            $  0.41
  Average Shares Outstanding           14,198    

On Dec. 8, 1995, The Clothestime Stores Inc., and five of its
subsidiaries filed for protection under Chapter 11 of the U.S.
Bankruptcy Code.

CONTACT: Clothestime Inc. Douglas L. Pereira, 714/779-5881,
Ext. 2410

CAI Wireless Systems, Inc.

ALBANY, N.Y., June 6, 1997 -- CAI Wireless Systems, Inc.
(Nasdaq: CAWS) announced today that it has closed its
previously-announced interim financing facility. The credit
facility, which terminates on March 1, 1999, includes $25 million
of term loans which bear interest at 13% and a $5 million
revolving loan bearing interest at the prime rate plus 4-3/4%.
$10 million of the term loans and $3 million of the revolving
loan was made available to CAI at closing. The remaining
installments of the term loan and revolving loan will be
available to CAI upon the achievement of certain operating
benchmarks by CAI. In connection with the closing, CAI paid
various closing fees and costs associated with the credit
facility. In addition, CAI issued warrants to the lenders to
purchase an amount of common stock equal to the maximum amount of
principal and interest outstanding on a 2-year, $1.5 million note
bearing interest at 14% issued by CAI as an additional fee to the
lenders. The warrants are exercisable at a per share price equal
to the lowest of (i) $1.90 per share, (ii) the lowest effective
net price which CAI receives in any recapitalization event, (iii)
the 20-day trading average of CAI common stock immediately
following a recapitalization event, and (iv) the 20-day trading
average of CAI common stock immediately following confirmation of
a plan or reorganization under Chapter 11 of the Bankruptcy Code.
The credit facility, which is secured by the assets of CAI,
including a pledge of the stock of its wholly-owned subsidiaries
and the stock held by CAI of CS Wireless Systems, Inc., an MMDS
operator with markets primarily in the midwestern and
southwestern regions of the United States, is provided by
Foothill Capital Corporation and Canyon Capital Management, L.P.,
and is permissible under the terms of CAI's existing senior debt.
CAI, based in Albany, operates six analog-based wireless video
systems in New York City, Rochester and Albany, NY; Philadelphia,
PA; Washington, DC; and Norfolk/Virginia Beach, VA, and provides
Internet access service in Rochester and New York City. CAI also
owns a portfolio of wireless cable channel rights in eight
additional markets, including Long Island, Buffalo and Syracuse,
NY; Providence, RI; Hartford, CT; Boston, NM; Baltimore, MD; and
Pittsburgh, PA. CAI also owns approximately 48% of CS Wireless
Systems, Inc. The statements contained in this press release
relating to CAI's future operations constitute forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Actual results of the Company
may differ materially from those in the forward-looking
statements and may be affected by a number of factors including
the ability of CAI to achieve the operating benchmarks necessary
to receive the balance of the term and revolving loans described
in this press release, the receipt of regulatory approvals for
alternative uses of its MMDS Spectrum, the availability of new
strategic partners and their willingness to enter into
arrangements with CAI, the terms of such arrangements, the
success of CAI's trials in various of its markets, the commercial
viability of any alternative use of MMDS Spectrum, consumer
acceptance of any new products offered or to be offered by CAI,
subscriber equipment availability, tower space availability,
absence of interference and the ability of CAI to redeploy or
sell excess equipment, as well as other factors contained herein
and in CAI's securities filings. SOURCE CAI Wireless
Systems, Inc. -

/CONTACT: James P. Ashman, CFO, of CAI Wireless, 518-462-2632,
or Media, Anne B. Inman, APR, or Lori Bookbinder of LevLane
Public Relations, 610-667-7313, or E-mail,,
or Investor Relations, Jason Thompson of Lippert/Heilshorn &
Associates, 212-838-3777/

Hanover Man Pleads Guilty To Theft Of Erisa
Funds And Bankruptcy Fraud, Announces Us Attorney's Office

BOSTON, Ma - June 6, 1997 - A Hanover, Massachusetts man pled
guilty today to the theft of ERISA funds belonging to employees
of the now-defunct Alonzo B. Reed, Inc., and with bankruptcy
fraud for concealing assets of that company.

United States Attorney Donald K. Stern stated that JOHN E.
FLYNN, JR., 45, of 33 Wade Way, Hanover, Massachusetts, pled
guilty today to stealing ERISA funds and bankruptcy fraud. At a
hearing today before U.S. District Judge Robert E. Keeton, a
prosecutor stated that FLYNN owned and operated Alonzo B. Reed,
Inc. ("ABR"), a Boston engineering firm which was
located on High Street; that FLYNN was responsible for forwarding
ABR employee withholdings to ABR's 401(k) plan; and that
beginning in April, 1994, FLYNN failed to forward over $6,000 in
such withdrawals but instead commingled the funds with other
corporate funds and used them for corporate and personal
purposes. As for the bankruptcy fraud, the prosecutor stated that
prior to and after causing ABR to file for bankruptcy in early
1995, FLYNN transferred more than $200,000 of ABR's receivables
to bank accounts under the name of Reed Consulting, a sole
proprietorship set up by FLYNN; that FLYNN used more than $30,000
of those funds for personal purposes - including buying a car,
paying personal credit card debt, making payments on a personal
loan, and for other payments to himself and his wife - as well as
for the business of ABR; and that FLYNN failed to disclose in
ABR's bankruptcy the existence of the Reed Consulting bank
accounts or that such accounts contained funds belonging to ABR.

Judge Keeton scheduled FLYNN's sentencing for September 5,
1997. FLYNN faces five years in prison, a $250,000 fine,
restitution, a $100 special assessment and three years supervised
release on each of the two charges.

This case is part of a national initiative to prevent abuse of
pension plans announced by Attorney General Janet Reno and
Secretary of Labor Alexis Herman in May of this year. The eight-
month initiative to combat abuse in the nation's pension and
retirement fund system has produced 70 cases nationwide involving
$90 million in pension plan losses. The effort, initiated last
October, seeks to protect the safety and integrity of the $3.5
trillion private pension plan system. Both Reno and Herman
stressed that the initiative was not taken in response to any
crisis confronting the pension plans and retirement funds. The
national initiative relies on the work of the Department of
Justice, Department of Labor, the U.S. Trustee's Office, the
Federal Bureau of Investigation, the Internal Revenue Service,
and the Securities and Exchange Commission.

This case was referred by the Massachusetts Attorney General's
Office and the U.S. Trustee in Boston, and investigated by the
Federal Bureau of Investigation and the U.S. Department of
Labor's Pension and Welfare Benefits Administration, and is being
prosecuted by Assistant U.S. Attorney Mark J. Balthazard of
Stern's Economic Crimes Unit.

SOURCE U.S. Attorney's Office /CONTACT: Joy Fallon or Amy
Rindskopf of the U.S. Attorney's Office, 617-223-9445/

Phoenix Summus completes reverse split;
Acquires oil & gas properties

NEW YORK, NY --June 6, 1997--Phoenix Summus Corp. (OTC
BB:SUMUF) today announced four major corporate developments that
should position the company for a period of substantial growth
over the foreseeable future.

-- The company successfully reorganized under Chapter-11
proceedings of the U.S. bankruptcy code on Feb. 28, 1997 and is
now structured as a holding company domiciled in Karitane (a
Polynesian island). The company is registered in the state of
Nevada with corporate headquarters currently located in Abilene,
Texas. The company is free of debt, obligations or other
liabilities and an audit is currently being performed by the
Certified Public Accounting firm of Fox, Byrd & Golden;
completion of the audit is expected in the next week.

-- The company today completed a 110 to 1 reverse split of its
common shares. The reverse split should allow the shares to trade
at a price more attractive to new investors.

-- Effective today, Phoenix Summus has acquired Forum Energy
Inc. ("Forum"), a privately held Texas based oil and
gas company, in exchange for 10,000,000 common shares of Phoenix
Summus Corp. Forum owns two attractive undeveloped oil and gas
properties in Central and West Texas which have substantial
reserve potential from a program of low risk development
drilling. Independent geological/geophysical reports indicate
un-risked reserves of more than 50,000,000 equivalent barrels of
oil (with a current net value of approximately $270 million).

-- As a result of the reverse split and Forum acquisition,
there are now 11,363,637 common shares outstanding. The shares
began trading today on the OTC Bulletin Board under the symbol
"SUMUF". Previously the company's shares traded under
the symbol "PXSC"; New CUSIP No. M79244 10 5.

-- To finance the drilling program on the Forum properties,
Phoenix Summus has a formal agreement with the investment banking
firm Finance Merchants Group ("FMG"), of London and
Nassau to raise a minimum of $45 million for the company over the
next five years, including $5 million during the coming 12
months. -0-

As a result of these developments, Phoenix Summus is
positioned for a period of substantial growth over the next five
years. The company has attractive oil and gas properties,
financing commitments and a solid corporate foundation. In
addition, an Oil and Gas Advisory Board has been formed to assist
management and the board of directors in planning development
drilling programs for its current properties and in identifying
additional opportunities in the oil and gas industry. -0- *T

New Transfer Agent: Signature Stock Transfer, Dallas,

For shareholders': Automated weekly update on corporate
business, 702/887-8893

Phoenix Summus Contact: Harold Blethen, Corp. Secretary,
915/928-6067 3241 South First St., Ste. 4 Abilene, Texas 79605