MAI Basic Four Inc is now so strapped for cash that Brooke Partners Limited Partnership, which is controlled by MAI’s chairman Bennett LeBow, is to pump $30m cash into the company in an investment that will give it a 51% stake. A rights issue will be made to shareholders to enable them to avoid dilution if they wish. Brooke also proposes to convert $25m of Series B preferred stock into restricted common, and provide financial guarantees to MAI through fiscal 1990. The Tustin, California firm warns that without the planned investment, it does not expect to be able to meet all of its future obligations under the existing credit agreement.
