MAI to Sell Subsidiaries: MAI Systems Corp.,...
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MAI to Sell Subsidiaries: MAI Systems Corp., a computer-services company based in Tustin, said it has defaulted on a total of $117 million in notes and bank loans after it missed an interest payment that was due last week.
To pay off debt, the company plans to sell its German, Austrian and Swiss subsidiaries to Deutsche Candover, a European management buyout concern. The deal, expected to close in mid-November, could provide MAI with as much as $120 million in cash, company officials said.
MAI missed an interest payment on $40 million in notes that was due Thursday. The missed payment triggered a default on $77 million owed to lenders.
For 1991, the company lost $78.4 million on sales of $336.3 million.
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