<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(Amendment No. 1)*
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)
FEBRUARY 13, 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 29 5 13D PAGE 2 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CALIFORNIA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 893,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 893,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 2 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 3 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CALIFORNIA
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 94,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 94,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 3 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 4 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
DELAWARE
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 384,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 384,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 4 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 5 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CANYON VALUE REALIZATION FUND (CAYMAN), 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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
CAYMAN ISLANDS
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 330,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 330,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 5 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 6 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
ILLINOIS
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 85,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 85,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 6 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 7 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 913,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 913,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 7 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 8 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 913,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 913,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 8 of 14 Pages)
<PAGE>
- ----------------------- ---------------------
CUSIP NO. 552620 29 5 13D PAGE 9 OF 14 PAGES
- ----------------------- ---------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
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
5 REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) [_]
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
UNITED STATES
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 903,000
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 903,000
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
955,000
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
12 CERTAIN SHARES*
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
13
11.7
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
IN
- ------------------------------------------------------------------------------
*SEE INSTRUCTION BEFORE FILLING OUT!
(Page 9 of 14 Pages)
<PAGE>
ITEM 1. SECURITY AND ISSUER
This Schedule relates to the Common Stock, par value $.01 per share (the
"Common Stock"), of MAI Systems Corporation, a Delaware corporation ("MAI"),
which has its principal executive offices at 9600 Jeronimo Road, Irvine,
California, (714) 580-0700. This Schedule amends a Schedule 13D filed on April
19, 1996 on behalf of the Reporting Persons listed in Items (i) through (vi) of
Item 2 below and on behalf of K. Robert Turner, Patrick Dooley, Scott Imbach,
Monica Young, Douglas Claman and Michael McCarthy.
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule is being filed by the following persons:
(i) CPI Securities L.P., a California limited partnership ("CPI"),
the general partner of which is Canpartners Incorporated
("Canpartners");
(ii) Canpartners, a California corporation, the capital stock of which
is owned one-third each by Mitchell R. Julis, R. Christian B.
Evensen and Joshua S. Friedman;
(iii) Value Realization Fund, L.P., a Delaware limited partnership
("VRF"), the general partner of which is Canpartners Investments
III, L.P., a California limited partnership, the general partner
of which is Canyon Capital Management, L.P., a California limited
partnership ("CCM"), the general partner of which is Canpartners;
(iv) Canyon Value Realization Fund (Cayman), Ltd., a Cayman Islands
corporation ("CVRFC");
(v) GRS Partners II, an Illinois general partnership ("GRS"); and
(vi) Messrs. Julis, Evensen and Friedman.
Each of the persons listed in (i) to (vi) above is hereinafter
referred to individually as a "Reporting Person" and collectively as the
"Reporting Persons." The Reporting Persons collectively may be deemed to be a
group beneficially owning, in the aggregate, 955,000 shares of Common Stock (the
"Shares") or approximately 11.7% of the outstanding shares of Common Stock
within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934,
as amended (the "Act").
The filing of this Schedule shall not be construed as an admission
that any Reporting Person is, for purposes of Section 13(d) or 13(g) of the Act,
the beneficial owner of any securities covered by this Schedule except for the
securities stated herein to be beneficially owned by such Reporting Person.
(b),(c) Canpartners, through its subsidiaries and affiliates, including CPI
and VRF, is primarily involved in trading securities for its own account and the
account of others and in investment advisory and investment banking services.
Mr. Evensen, a director and President of Canpartners, holds 26.33% of the
limited partnership interests in CPI and holds various positions or limited
partnership interests in affiliates of Canpartners. Mr. Friedman, a director,
Vice President and Secretary of Canpartners, holds 26.33% of the limited
partnership interests in CPI and holds various positions or limited partnership
interests in affiliates of Canpartners. Mr. Julis, a director, Vice President
and Treasurer of Canpartners, holds 26.33% of the limited partnership interests
in CPI and holds various positions or limited partnership interests in
affiliates of Canpartners. The business address of each of these Reporting
Persons is 9665 Wilshire Boulevard, Suite 200, Beverly Hills, California 90212.
CVRFC and GRS are each managed accounts of CCM, a registered
investment advisor. The business address of CVRFC is c/o MeesPierson, P.O. Box
2003, British American Center, Phase 3, Dr.
(Page 10 of 14 Pages)
<PAGE>
Roy's Drive, Grand Cayman, B.W.I. The business address of GRS is 333 West Wacker
Drive, Suite 1600, Chicago, IL 60606.
(d),(e) None of the Reporting Persons during the last five years (1) has
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or (2) was a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The shares of Common Stock were purchased at a price of $6.50 per share.
The aggregate purchase price for the Common Stock for each Reporting Person who
purchased Common Stock in the transactions being reported on this Schedule is
set forth below:
<TABLE>
<CAPTION>
NUMBER AGGREGATE
OF SHARES PURCHASE
REPORTING PERSON ACQUIRED PRICE
<S> <C> <C>
CPI Securities L.P............................. 20,000 $ 130,000
Value Realization Fund, L.P.................... 180,000 1,170,000
Canyon Value Realization Fund (Cayman), Ltd.... 180,000 1,170,000
GRS Partners II................................ 20,000 130,000
</TABLE>
Each of the entities used its own working capital funds to purchase its
shares of Common Stock.
ITEM 4. PURPOSE OF TRANSACTION
All of the shares of Common Stock were purchased for investment purposes
only. The Reporting Persons have entered into a letter of intent, attached as
Exhibit B to this Schedule pursuant to which the Reporting Persons have
committed, subject to the completion by MAI of certain transactions, to
subscribe (at the election of MAI, in whole or in part) to $6 million of MAI's
11% subordinated notes due 2004, pursuant to a note purchase agreement between
the Reporting Persons and MAI (the "Note Purchase Agreement"), a representative
copy of which is attached as Exhibit C to this Schedule, with warrants attached
to purchase 750,000 shares of the Common Stock at a price of $8 per share (the
"Warrants"), pursuant to a warrant agreement (the "Warrant Agreement") between
the Reporting Persons and MAI, a representative copy of which is attached as
Exhibit D to this Schedule and a registration rights agreement among MAI and the
Reporting Persons (the "Registration Rights Agreement") pursuant to which MAI
has agreed to register any securities underlying the Warrants.
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 955,000 shares of Common Stock of MAI, which constituted
approximately 11.7% of the 8,179,186 shares of Common Stock outstanding as of
September 30, 1996 (as reported in MAI's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1996).
(b) With respect to the 20,000 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 180,000 shares of Common Stock
acquired by VRF, VRF exercises both voting and dispositive power and since VRF
is ultimately controlled by Canpartners, Canpartners
(Page 11 of 14 Pages)
<PAGE>
exercises both voting and dispositive power with respect to such shares. With
respect to the 180,000 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
20,000 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 shares of Common Stock.
(c) Item 3 above sets forth by Reporting Person the amount of shares
acquired and the aggregate purchase price of such shares. All of the
transactions reflected in Item 3 above were effected on February 13, 1997.
Except for the acquisition of shares reflected in Item 3 above, none of the
Reporting Persons have effected any transaction in the Common Stock in the past
60 days.
(d) No persons other than the other Reporting Persons, each with respect to
the shares of Common Stock acquired by them, have the right to receive or power
to direct the receipt of dividends from, or the proceeds from the sale of, the
shares of Common Stock.
(e) N/A
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER
Except with respect to the Exhibits listed in Item 7 below, there are no
contracts, arrangements, understandings or relationships among the Reporting
Persons or any other persons with respect to the securities of MAI.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit A: Joint Filing Agreement among the Reporting Persons dated the
date hereof.
Exhibit B: Subscription and Commitment Agreement, dated as of February 13,
1997 among MAI and the Reporting Persons.
Exhibit C: The Note Purchase Agreement.
Exhibit D: The Warrant Agreement.
Exhibit E The Registration Rights Agreement.
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/ Mitchell R. Julis
______________________________________________
MITCHELL R. JULIS
Vice President
(Page 12 of 14 Pages)
<PAGE>
CANPARTNERS INCORPORATED
By: /s/ Mitchell R. Julis
________________________________________________
MITCHELL R. JULIS
Vice President
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/ Mitchell R. Julis
___________________________________
MITCHELL R. JULIS
Vice President
CANYON VALUE REALIZATION FUND (CAYMAN), LTD.
By: /s/ R.H. Hanson
______________________________________________
R.H. HANSON
GRS PARTNERS II
By: /s/ Michael J. Sacks
______________________________________________
MICHAEL J. SACKS
/s/ Mitchell R. Julis
__________________________________________________
MITCHELL R. JULIS
/s/ Joshua S. Friedman
__________________________________________________
JOSHUA S. FRIEDMAN
/s/ R. Christian B. Evensen
__________________________________________________
R. CHRISTIAN B. EVENSEN
(Page 13 of 14 Pages)
<PAGE>
EXHIBIT A
JOINT FILING AGREEMENT
(Pursuant to Rule 13d-1(f)(1) under the Securities Exchange Act of 1934, as
amended)
Each of the undersigned hereby agrees to be included in the filing of the
Schedule 13D dated February 18, 1997 and any subsequent amendments hereto,
relating to the shares of Common Stock, par value $.01 per share, of MAI Systems
Corporation, a Delaware corporation, beneficially owned by each of the
undersigned.
February 18, 1997
CPI SECURITIES L.P.
By: Canpartners Incorporated, its General Partner
By: /s/ Mitchell R. Julis
_______________________________________
MITCHELL R. JULIS
Vice President
CANPARTNERS INCORPORATED
By: /s/ Mitchell R. Julis
__________________________________________
MITCHELL R. JULIS
Vice President
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/ Mitchell R. Julis
___________________________________
MITCHELL R. JULIS
Vice President
VALUE REALIZATION FUND (CAYMAN), LTD.
By: /s/ R.H. Hanson
______________________________________________
R.H. HANSON
GRS PARTNERS II
By: /s/ Michael J. Sacks
______________________________________________
MICHAEL J. SACKS
/s/ Mitchell R. Julis
__________________________________________________
MITCHELL R. JULIS
/s/ Joshua S. Friedman
__________________________________________________
JOSHUA S. FRIEDMAN
/s/ R. Christian B. Evensen
__________________________________________________
R. CHRISTIAN B. EVENSEN
(Page 14 of 14 Pages)
