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MAI SYSTEMS CORP. ANNOUNCES U.S. AND CANADIAN LENDING BANKS HAVE ASSUMED OWNERSHIP OF STOCK OF ITS EUROPEAN SUBSIDIARIES

 TUSTIN, Calif., March 22 /PRNewswire/ -- MAI Systems Corporation (NYSE: MCO) announced today that its U.S. and Canadian lending banks have assumed ownership of the stock of its European subsidiaries, including its German subsidiary. As a result, MAI's U.S. and Canadian bank indebtedness, which at March 15, 1993, amounted to approximately $84 million, has been released and satisfied. The Company has also been released from its guarantee of the outstanding bank loans of MAI Deutschland, its former German subsidiary, which amounted to DM 13.2 million (approximately $7.9 million) at March 15, 1993. In connection with this transaction, MAI will recognize a gain of approximately $65 million.
 The new owners of the European subsidiaries, who are MAI's former U.S. and Canadian bank lenders, will direct the operations of the European subsidiaries through their control of a new company named Application Systems, Inc., incorporated in the state of Delaware.
 MAI Systems Corporation will now consist of four independent business units operating primarily in North and South America with 11,000 customers. For the year ended Dec. 31, 1992, aggregate revenues for such business units were approximately $103 million.
 Commenting on the transaction, Peter S. Anderson, President of MAI Systems Corporation, said: "The months which we have spent seeking to sell assets to satisfy our bank and other debt and, more recently, negotiating this transaction have been costly in terms of management disruption. Now that our secured bank debt has been satisfied, we intend to focus our attention on settling our outstanding trade and other indebtedness and improving the operating performance of our remaining business."
 -0- 3/22/93
 /CONTACT: Peter S. Anderson, president of MAI Systems Corporation, 714-730-2241/
 (MCO)


CO: MAI Systems Corp. ST: California IN: CPR SU:

BP-JL -- LA032 -- 8432 03/22/93 18:57 EST
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Publication:PR Newswire
Date:Mar 22, 1993
Words:299
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