MAI Says Sale of Its Central European Operations Collapsed

MAI Systems Corp. said late Wednesday that the sale of its German, Austrian and Swiss operations has been halted because the buyer has refused to complete the transaction.

The buyer, European management buyout firm Candover PLC, has no justification for its action, and MAI is considering a lawsuit, said Robert J. Amman, vice chairman of MAI Systems.

MAI, a computer-services company with annual revenue of $336 million, said it is continuing discussions with other investors involved in the transaction and also intends to seek other potential buyers. The company announced in October, after defaulting on $117 million in notes and bank loans, that it would sell the Central European operations. The sale was expected to bring in as much as $120 million.