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The microbial transformation of 8-chloro-10,11-dihydrodibenz(b,f)(1,4)oxazepine (compound I) was undertaken to obtain new derivatives. Compound I was transformed by Hormodendrum sp. (NRRL 8133) to 8-chloro-10,11-dihydrodibenz(b,f)(1,4)oxazepine-11-one (compound II) and 2-(2-amino-4-chlorophenoxy)benzyl alcohol (compound IV). Microbial cleavage of the nonaromatic ring to form compound IV was accomplished by several other fungi. Compound I was transformed to 8-chlorodibenz(b,f)(1,4)oxazepine (compound III) by Hormodendrum cladosporioides (NRRL 8132).

Microbial transformation of 8-chloro-10,11-dihydrodibenz(b,f)(1,4)oxazepine by fungi