MAI Systems Corp, the debt-laden Tustin, California business systems specialist said that Candover Plc, which had been negotiating to acquire its German, Austrian and Swiss operating subsidiaries, will not complete the transaction on the terms originally agreed: MAI says it is continuing talks with other investors involved in the deal to determine whether a revised basis for completing the deal can be arrived at, and it also intends to open talks with other potential buyers but warns that there can be no assurance that the units will be sold in the foreseeable future – and it is exploring possible legal action to recover damages from Candover; and the German subsidiary, which has $12.4m of outstanding loans, including $4.1m due on November 26, has had to rush to its lenders to seek a debt rescheduling; MAI is also in talks with its US and Canadian lenders on amending its own credit agreements, under which about $77m plus interest is currently outstanding, to enable the company to continue operating.
