MAI Systems restructures $5.7 million secured subordinated debt

By Sheri Kasprzak

New York, Sept. 29 - MAI Systems Corp. said it has restructured $5.7 million in secured subordinated debt.

Under the terms of the original agreement with investor Canyon Capital Management LP, MAI had been required to make monthly interest payments of $52,000 on the 11% facility until its principal bank loan with Wamco 32, Ltd. was paid in full in March 2006.

At that time, the facility would convert into a three-year amortizing loan with equal monthly principal and interest payments of $190,000.

Under the terms of the restructuring, the debt has been changed to amortize over four and a half years and the monthly principal and interest payments have been reduced to $130,000. The debt with Canyon will still mature in March 2009.

Based in Lake Forest, Calif., MAI develops property management software for the hotel industry.

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