UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 4 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP ( ) Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instructions 1(b). 1. Name and Address of Reporting Person PNC Bank Corp., . One PNC Plaza 249 Fifth Avenue Pittsburgh, PA 15222-2707 USA 2. Issuer Name and Ticker or Trading Symbol Preferred Networks, Inc. PNFT 3. IRS or Social Security Number of Reporting Person (Voluntary) 4. Statement for Month/Year June 1997 5. If Amendment, Date of Original (Month/Year) 6. Relationship of Reporting Person(s) to Issuer (Check all applicable) ( ) Director (X) 10% Owner ( ) Officer (give title below) ( ) Other (specify below) 7. Individual or Joint/Group Filing (Check Applicable Line) ( ) Form filed by One Reporting Person (X) Form filed by More than One Reporting Person
___________________________________________________________________________________________________________________________________ Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect | | Transaction | or Disposed of (D) | Securities |ect | Beneficial Ownership | | | | | Beneficially |(D)or | | | | | | | A/| | Owned at |Indir | | | Date |Code|V| Amount | D | Price | End of Month |ect(I)| | ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________| ___________________________________________________________________________________________________________________________________ Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned | ___________________________________________________________________________________________________________________________________| 1.Title of Derivative |2.Con- |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of| Security |version |Transaction | rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect | |or Exer | | | rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial | |cise | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership | |Price of| | | posed of(D) |Day/Year) | |rity |Benefi |or | | |Deriva- | | | |Date |Expir| | |ficially |Ind| | |tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| | |Secu- | | | | | D |cisa-|Date | of Shares | |End of |ct | | |rity |Date |Code|V| Amount | |ble | | | |Month |(I)| | ___________________________________________________________________________________________________________________________________| Warrants to purchase c|$1.50 |06/17|P | |1,303,333 |A |06/17|06/17|Common Stock|1,303,3|(2) |1,303,333 | |I (1) | ommon stock | |/97 | | | | |/97 |/02 | |33 | | | | | - -----------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | ___________________________________________________________________________________________________________________________________|
Explanation of Responses: (1) PNC Holding Corp. ("PNCHC") is the owner of all of the outstanding common stock of PNC Capital Corp. ("PNCCC"). The Reporting Person is the owner of all of the outstanding common stock of PNCHC. By virtue of the relationships described above, PNCHC and the Reporting Person may be deemed to control PNCCC and possess indirect beneficial ownership of the securities of the Issuer directly beneficially held by PNCCC. Each of the Reporting Person, PNCHC and PNCCC may be deemed to be a member of a group holding in excess of 10% of the Issuer's Common Stock. However, the Reporting Person, PNCHC and PNCCC each disclaim beneficial ownership of, and any pecuniary interest in, any Issuer securities held by any other person, except as provided above. (2) On June 17, 1997, PNCCC and certain other stockholders of the Issuer (the "Stockholders") invested an aggregate of $15 million in newly issued Class A Preferred Stock and warrants of the Issuer. PNCCC invested a total of $1,700,000 of such amount. Joint Filer Name: PNC Capital Corp. Address: c/o PNC Bank, Delaware 222 Delaware Avenue Wilmington, DE 19801 Signature: _/s/ Gary J. Zentner, President_______ Gary J. Zentner, President Joint Filer Name: PNC Holding Corp. Address: c/o PNC Bank, Delaware 222 Delaware Avenue Wilmington, DE 19801 Signature: _/s/ Robert L. Haunschild___________ Robert L. Haunschild, Chairman and President SIGNATURE OF REPORTING PERSON /s/ Robert L. Haunschild, Sr. Vice President & CEO DATE July 10, 1997