Having tried and failed to find a buyer for its relatively big German subsidiary and its other European subsidiaries, a quest that was made urgent by its need for cash, MAI Systems Corp, Tustin, California has handed the subsidiaries over to its US and Canadian banks. The banks have accepted the businesses in lieu of the full $84m the company owed them. MAI was also released from its guarantee of the outstanding bank loans of MAI Deutschland, its former German subsidiary, which was about $8m as of March 15. The deal will give MAI an exceptional gain of about $65m. The new owners of the European subsidiaries will direct operations through their control of a new company, Application Systems Inc. MAI will now consist of four independent business units operating primarily in North and South America. The company was a victim of the mania for leveraged buyouts of the late 1980s and has been staggering under its burden of debt.
