Printer Friendly

MAI SYSTEMS CORP. ANNOUNCES DEUTSCHE CANDOVER HAS OBTAINED FINANCING FOR PURCHASE OF EUROPEAN SUBSIDIARIES

 MAI SYSTEMS CORP. ANNOUNCES DEUTSCHE CANDOVER HAS
 OBTAINED FINANCING FOR PURCHASE OF EUROPEAN SUBSIDIARIES
 TUSTIN, Calif., Oct. 16 /PRNewswire/ -- MAI Systems Corp. (NYSE: MCO) announced today that Deutsche Candover, the European management buyout firm which has been negotiating for the purchase of the company's German, Austrian and Swiss operating subsidiaries, has obtained financing commitments for such purchase, subject to final contract. The company expects to sign a definitive sale agreement with the buyer next week and to close the sale by mid-November. Under the terms currently being discussed, the purchase price is 150 million Deutsche Marks, of which approximately DM 80 million will be paid to the company in cash. Approximately DM 20 million will be used to retire all outstanding bank indebtedness of the German subsidiary, and the balance will be used for transaction expenses, to pay trade and other creditors of the company and to reduce the company's U.S. and Canadian bank debt.
 The company also announced that it did not pay the interest due on Oct. 15, 1992, on the $40 million outstanding principal amount of its senior subordinated notes due 1996, resulting in an event of default under the indenture for such notes. Failure to pay the interest is also an event of default pursuant to the terms of the company's U.S. and Canadian credit agreements, under which $77 million of bank indebtedness is currently outstanding. No acceleration has occurred with respect to such bank debt, and, on Oct. 5, 1992, the company and its lending banks amended the credit agreements to provide for, among other things, an extension of the final maturity of the indebtedness outstanding thereunder to Oct. 20, 1992, subject to demand for prepayment at any time upon one business day's notice.
 The company also announced that its German subsidiary had earlier obtained an extension from its lending banks to defer the maturity of the DM 6.6 million principal payment which was due on Aug. 11, 1992. On Sept. 28, 1992, the company's German subsidiary obtained a further extension of such principal payment to Oct. 30, 1992, subject to demand for prepayment at any time upon two business days' notice.
 The company is currently engaged in discussions with its U.S. and Canadian lenders with a view toward working out appropriate amendments to the credit agreements. In addition, the company has been in contact with holders representing in excess of 75 percent of the outstanding principal amount of senior subordinated notes to update such holders as to the status of the company's current financial condition and with a view toward resolving the current default under the indenture. The company plans to hold further discussions with such holders. The company cannot predict the outcome of any such discussions.
 MAI combines market-specific application software solutions with its own and industry-standard operating system software, network products, horizontal software and computer hardware into multiuser business computer systems for use by businesses throughout the world. MAI has shipped more than 45,000 systems into the 35 countries in which its products are marketed.
 -0- 10/16/92
 /CONTACT: Peter S. Anderson of MAI Systems, 714-730-2241/
 (MCO) CO: MAI Systems Corp.; Deutsche Candover ST: California IN: CPR SU:


LS-KJ -- LA029 -- 1228 10/16/92 20:11 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 16, 1992
Words:541
Previous Article:OTS PUTS SECURITY SAVINGS, MISSISSIPPI, IN RECEIVERSHIP; DEPOSITORS PROTECTED
Next Article:STATEMENT FROM DAVID KOCH, EXECUTIVE VP KOCH INDUSTRIES, REGARDING MICHIGAN CITIZENS COMMITTEE AGAINST TERM LIMITATIONS
Topics:


Related Articles
MAI SYSTEMS CORP. ANNOUNCES THAT IT IS ENGAGED IN NEGOTIATIONS FOR THE SALE OF ITS GERMAN, AUSTRIAN AND SWISS OPERATING SUBSIDIARIES
MAI SYSTEMS CORP. ANNOUNCES AGREEMENT TO SELL GERMAN, AUSTRIAN AND SWISS OPERATING SUBSIDIARIES
(MAI SYSTEMS CORPORATION PRESS RELEASE)
MAI SYSTEMS ANNOUNCES IT HAS FILED FOR CHAPTER 11 PROTECTION
MAI SYSTEMS CORP. FILES PLAN OF REORGANIZATION AND ANNOUNCES RESULTS
First Data Merchant Services and Deutsche Postbank Launch Merchant Acquiring Joint Venture in Germany.
Storage Networking -- Deutsche Banc Alex. Brown's Ricci And Elling Launch Coverage of the Sector.
Preliminary agreement to acquire ABB's Upstream OGP.
Candover acquires Thule AB.
CANDOVER INVESTMENTS PLC - Acquisition(s).

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters