<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Amendment No. 3)*
UNDER THE SECURITIES EXCHANGE ACT OF 1934
MAI SYSTEMS CORPORATION
-----------------------
(Name of Issuer)
COMMON STOCK
------------
(Title of Class of Securities)
552620 20 5
-----------
(CUSIP Number)
GARY J. COHEN, ESQ.
SIDLEY & AUSTIN
555 WEST FIFTH STREET
LOS ANGELES, CALIFORNIA 90013-1010
(213) 896-6013
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
SEPTEMBER 18, 1997
------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box [_].
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
Check the following box if a fee is being paid with the statement [_]. (A
fee is not required only if the reporting person; (1) has a previous statement
on file reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be
filed with the Commission. See Rule 13d-1(a) for other parties to whom
copies are to be sent.
(Continued on following pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 2 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
CANPARTNERS INCORPORATED
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CALIFORNIA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 1,643,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 1,643,000
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(2 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 3 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
CPI SECURITIES L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CALIFORNIA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 131,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 131,500
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(3 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 4 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
THE VALUE REALIZATION FUND, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
DELAWARE
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 721,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 721,500
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(4 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 5 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
THE CANYON VALUE REALIZATION FUND (CANYMAN), LTD.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CAYMAN ISLANDS
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 667,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 667,500
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(5 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 6 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
GRS PARTNERS II
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
WC
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
ILLINOIS
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 122,500
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 122,500
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(6 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 7 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
MITCHELL R. JULIS
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF; PF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 1,663,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 1,663,000
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(7 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 8 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
JOSHUA S. FRIEDMAN
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF; PF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 1,663,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 1,663,000
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(8 of 13 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 20 5 13D PAGE 9 OF 13 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSONS
1 S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
R. CHRISTIAN B. EVENSEN
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [X]
(b) [_]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
AF; PF
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
5 PURSUANT TO ITEMS 2(d) OR 2(e)
[_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 1,653,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
REPORTING SOLE DISPOSITIVE POWER
9
PERSON 1,653,000
WITH -----------------------------------------------------------
SHARED DISPOSITIVE POWER
10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
1,705,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW 11 EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13
18.0%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(9 of 13 Pages)
<PAGE>
This Amendment No. 3 ("Amendment") relates to the Statement on Schedule
13D, dated April 19, 1996, as amended by Amendment No. 1 ("Amendment 1"), dated
February 18, 1997 and Amendment No. 2, dated March 6, 1997, filed with the
Securities and Exchange Commission on behalf of CPI Securities L.P., a
California limited partnership ("CPI"), Canpartners Incorporated, a California
corporation ("Canpartners"), The Value Realization Fund, L.P., a Delaware
limited partnership ("VRF"), The Canyon Value Realization Fund (Cayman), Ltd., a
Cayman Islands corporation ("CVRFC"), GRS Partners II, an Illinois general
partnership ("GRS") and Messrs. Julis, Evensen, and Friedman (they, together
with CPI, Canpartners, VRF, CVRFC and GRS, the "Reporting Persons") with respect
to the common stock, par value $0.01 per share ("Common Stock"), of MAI Systems
Corporation, a Delaware corporation ("MAI").
Item 3 is hereby amended to read in its entirety as follows:
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
On September 18, 1997, the exercise price of the warrants (as defined in
Item 4) to purchase shares of Common Stock, was reduced from $8.00 per share to
$3.04 per share and the Reporting Persons exercised their right to purchase an
aggregate number of 750,000 shares of Common Stock for an aggregate
consideration of $2,280,000. The share of the purchase price for each Reporting
Person is set forth below:
<TABLE>
<CAPTION>
NUMBER AGGREGATE
OF SHARES PURCHASE
REPORTING PERSON ACQUIRED PRICE
<S> <C> <C>
CPI Securities L.P................................. 37,500 $ 114,000
The Value Realization Fund, L.P.................... 337,500 1,026,000
The Canyon Value Realization Fund (Cayman), Ltd.... 337,500 1,026,000
GRS Partners II.................................... 37,000 114,000
</TABLE>
The purchase of the Common Stock was effectuated by reducing the principal of
notes (as defined in Item 4) held by Reporting Persons by $750,000 plus accrued
interest of $27,500 with the remainder of $1,502,500 provided by the working
capital of each of the entities.
Item 4 is hereby amended to read in its entirety as follows:
ITEM 4. PURPOSE OF TRANSACTION.
The shares of Common Stock were purchased for investment purposes only.
The Common Stock was purchased by exercising warrants obtained pursuant to a
warrant agreement, dated as of March 3, 1997, between the Reporting Persons and
MAI, a representative copy of which was attached as Exhibit D to Amendment 1,
whereby the Reporting Persons had a right to purchase 750,000 shares of Common
Stock. $777,500 of the exercise price was provided by the
(10 of 13 Pages)
<PAGE>
application of $750,000 of principal, plus $27,500 in accrued interest, from the
Reporting Persons' subordinated notes due 2004, a representative copy of which
was attached as Exhibit C to Amendment 1.
Item 5 is hereby amended in its entirety to read as follows:
ITEM 5. INTEREST IN SECURITIES OF ISSUER.
(a) As of the date hereof, each of the Reporting Persons, acting as a
group within the meaning of Section 13(d)(3) of the Act, was the beneficial
owner of an aggregate of 1,705,000 shares of Common Stock of MAI (including
9,464,685 shares of Common Stock the Reporting Persons acquired upon exercise of
the warrants), which constituted approximately 18.0% of the 8,714,685 shares of
Common Stock outstanding as of June 30, 1997 (as reported in MAI's Quarterly
Report on Form 10Q for the quarter ended June 30, 1997) plus 750,000 shares
issued upon exercise of the warrants.
(b) With respect to the 37,500 shares of Common Stock acquired by CPI, CPI
exercises both voting and dispositive power and since CPI is controlled by
Canpartners, Canpartners exercises both voting and dispositive power with
respect to such shares. With respect to the 337,500 shares of Common Stock
acquired by VRF, VRF exercises both voting and dispositive power with respect to
such shares and since VRF is ultimately controlled by Canpartners, Canpartners
exercises both voting and dispositive power with respect to such shares. With
respect to the 337,500 shares of Common Stock acquired by CVRFC, CVRFC exercises
both voting and dispositive power and since the account of CVRFC is managed by
CCM which is ultimately controlled by Canpartners, Canpartners exercises both
voting and dispositive power with respect to such shares. With respect to the
37,500 shares of Common Stock acquired by GRS, GRS exercises both voting and
dispositive power and since the account of GRS is managed by CCM which is
ultimately controlled by Canpartners, Canpartners exercises both voting and
dispositive power with respect to such shares. Canpartners is, in turn,
controlled by Messrs. Evensen, Friedman, and Julis and each of these Reporting
Persons therefore exercises both voting and dispositive power with respect to
the shares of Common Stock acquired by CPI, VRF, CVRFC and GRS. Each of the
Reporting Persons who is an individual exercises both voting and dispositive
power over the shares of Common Stock acquired by them. Except as set forth in
this Item 5(b), none of the Reporting Persons has voting or dispositive power
over another Reporting Person's share of Common Stock.
(c) Item 3 above sets forth by Reporting Persons the amount of shares
which each Reporting Person has acquired after exercising the warrants and the
aggregate purchase price of such shares. All of the transactions reflected in
Item 3 above were effectuated on September 18, 1997. None of the Reporting
Persons have effected any other transaction in the Common Stock in the past 60
days.
(d) No persons other than the Reporting Persons, each with respect to the
shares of Common Stock which they have acquired upon exercising the warrants,
have the right to receive
(11 of 13 Pages)
<PAGE>
or power to direct receipt of dividends from, or the proceeds from the sale of,
the shares of Common Stock.
(e) N/A.
Item 7 is hereby amended to incorporate the following Exhibit F.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit F: Repricing of Warrants letter dated September 12, 1997.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
CPI SECURITIES L.P.
By: Canpartners Incorporated, its General Partner
By: /s/ R. Christian B. Evensen
__________________________________________
R. Christian B. Evensen, President
CANPARTNERS INCORPORATED
By: /s/ R. Christian B. Evensen
__________________________________________
R. Christian B. Evensen, President
THE VALUE REALIZATION FUND, L.P.
By: Canpartners Investments III, L.P., its General
Partner
By: Canyon Capital Management, L.P., its General
Partner
By: Canpartners Incorporated, its General Partner
By: /s/ R. Christian B. Evensen
__________________________________________
R. Christian B. Evensen, President
(12 of 13 Pages)
<PAGE>
THE CANYON VALUE REALIZATION FUND (CAYMAN), LTD.
By: /s/ R.H. Hanson
_______________________________
R.H. Hanson, Director
GRS PARTNERS II
By: Grosvenor Capital Management, L.P., its
Administrator
By: Grosvenor Capital Management, Inc., its General
Partner
By: /s/ Michael J. Sacks
_______________________________________
Michael J. Sacks, Vice President
INDIVIDUALLY,
/s/ Mitchell R. Julis
__________________________________________
Mitchell R. Julis
/s/ Joshua S. Friedman
__________________________________________
Joshua S. Friedman
/s/ R. Christian B. Evensen
__________________________________________
R. Christian B. Evensen
(13 of 13 Pages)
<PAGE>
Exhibit F
MAI Systems Corporation
9601 Jeronimo Road
Irvine, California 92618
September 12, 1997
Richard S. Ressler
The Value Realization Fund, L.P.
Canyon Value Realization Fund (Cayman), Ltd.
GRS Partners II
CPI Securities L.P.
Re: Repricing of Warrants
Dear Sirs:
MAI Systems Corporation (the "Company") has authorized the
repricing of warrants as identified on Exhibit A hereto and pursuant to the
terms set forth in such Exhibit A.
If you wish to accept such repricing and exercise your warrants
during the Repricing Period at the Temporary Exercise Price of $3.04 per
share, please sign the acceptance as set forth below and fax back to our
counsel, Sullivan & Cromwell, Attention: Frank H. Golay, Jr., fax no.
213/683-0457.
With respect to the holders of warrants other than Mr. Ressler
(herein collectively called the "Canyon Partners"), it is understood that they
will exercise all of their warrants and make payment for such exercise in the
form of surrender of portions of the 11% Subordinated Notes due 2004 issued by
the Company and held by the Canyon Partners, with the remainder being paid in
cash. Portions of the Notes to be surrendered will aggregate $750,000 principal
amount, together with accrued interest of $27,500 (representing interest from
September 4, 1997 to September 18, 1997). The aggregate cash portion of their
exercise will be 1,502,500. As among the Canyon Partners, they will each make
such exercise pro rata according to the amounts of notes and warrants owned by
them, as shown on Schedule 1 hereto.
<PAGE>
2-
Richard S. Ressler, et al.
It is understood that Mr. Ressler will exercise his warrant for 50,000
shares in full for cash. Mr. Ressler's shares will be registered in the name of
Merrill Lynch and delivered to Merrill Lynch, Attn: Seth Bermel, tel.
310/858-4843.
In order to accept the repricing, signed acceptances must be received no
later than Thursday, September 18, 1997. It is also requested that the cash
payments be made at the same time. Wire transfer instructions and other
instructions respecting the delivery of documents will be sent to you separately
by Karen Townsend.
If there are any questions, please contact Frank Golay at 213/955-8037.
Very truly yours,
MAI SYSTEMS CORPORATION
By: /s/ L. H. STANTON
------------------
Name: L. H. STANTON
Title: Executive Vice President
and Chief Executive Officer/
Chief Financial Officer
Accepted and agreed to:
/s/ Richard S. Ressler
- -----------------------
RICHARD S. RESSLER
<PAGE>
3-
Richard S. Ressler, et al.
THE VALUE REALIZATION FUND,
L.P., a California limited partnership
By: Canpartners Investments III,
L.P., a California limited
partnership, its general partner
By: Canyon Capital Management,
L.P., a California limited
partnership, its general partner
By: Canpartners Incorporated, a
California corporation, its
general partner
By: /s/ Joshua S. Friedman
-----------------------
Name: Joshua S. Friedman
Title: Vice President
CANYON VALUE REALIZATION
FUND (CAYMAN), LTD.
By: /s/ Roger H. Hanson
-----------------------
Name: Roger H. Hanson
Title: Director
<PAGE>
Richard S. Ressler, et al.
GRS PARTNERS II
By: Grosvenor Capital
Management, L.P., its
Administrator
By: Grosvenor Capital
Management, Inc., its general
partner
By: /s/ Michael Sacks
---------------------------------
Name: Michael Sacks
Title: Vice President & Secretary
CPI SECURITIES L.P.,
a California limited partnership
By: Canpartners Incorporated,
a California corporation, its
general partner
By: /s/ Joshua S. Friedman
---------------------------------
Name: Joshua S. Friedman
Title: Vice President
