A trust controlled by the Benderson family of Buffalo said Monday it holds the equivalent of a 7.56 percent stake in the outstanding common stock of Barrister Information Systems Corp. for investment purposes.
Benderson Trust made the investment last year, when it purchased $500,000 of the 13 percent convertible subordinated debentures that Barrister sold in a private placement designed to boost the firm's working capital. In all, $2.3 million in debentures were sold.
The trust was required to report its holdings in a filing with the Securities and Exchange Commission because the debentures it controlled could be converted into 250,000 shares of Barrister common stock, which would be equal to 7.56 percent of the outstanding shares.
Investors with holdings that can be converted into more than 5 percent of a firm's common stock must report their investment to the SEC. Other investors who purchased a significant portion of those debentures last year also will be required to make similar filings.
For the moment, it is unlikely that those debentures will be converted into stock. While Barrister stock closed at 1 1/4 Monday, the debentures can be converted into common stock at a price of $2 per share through Sept. 30, 1994, and $4 per share after that.