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A novel simple two-step synthesis of phenolic benzosultams is first reported. o-Lithiation of N-Boc-otoluenesulfonamide followed by reaction with methoxybenzaldehydes gave carbinol sulfonamides, which were converted to the cyclic phenolic compounds via TMSCl/NaI/MeCN reagent mediated sequence involving N-deprotective cyclization and O-demethylation.