Printer Friendly

CREDIT LYONNAIS BANK NEDERLAND ANNOUNCES FORECLOSURE ACTION

 CREDIT LYONNAIS BANK NEDERLAND ANNOUNCES FORECLOSURE ACTION
 NEW YORK, April 16 /PRNewswire/ -- Credit Lyonnais Bank Nederland, N.V. (CLBN) announced today that it has taken action to foreclose on 98.5 percent of the common stock of MGM-Pathe Communications Co. (MGM) which CLBN is holding as collateral for loans made to MGM, its parent company Pathe Communications Corporate (PCC) and other related entities.
 The foreclosure action announced today by CLBN will result in an auction of 98.5 percent of MGM's common stock owned by PCC. CLBN announced its intention today that at least $400,000,000 of the indebtedness owed to it by PCC and its affiliates will be bid in for the purchase of the common stock, which shall remain subject to a prior pledge securing approximately $170,000,000 of PCC indebtedness. The auction will be held on May 7, 1992 in Wilmington, Del.
 "By severing the last connection between MGM and Giancarlo Parretti, this action strengthens MGM's foundation and reinforces the ability of co-chairmen Dennis Stanfill and Alan Ladd, Jr. to continue the revitalization of this premier entertainment company," a spokesman for CLBN said.
 CLBN's foreclosure is pursuant to a pledge of the MGM common stock made by PCC in April 1991. At that time, CLBN, which was MGM's major lender, loaned additional money to MGM to continue operations and prevent involuntary bankruptcy. In return for these loans, Parretti and his then affiliated companies agreed to relinquish control of MGM to a new management team, and MGM, PCC and such other entities granted CLBN various rights including pledges of MGM and PCC stock and voting rights over the same stock as security for the loans.
 After Parretti failed to live up to the terms of his agreements, CLBN began exercising voting rights over the MGM stock and removed Parretti from management of MGM. A lengthy legal battle ensued in Delaware, and at the end of December 1991 the Delaware Chancery Court confirmed that CLBN had the power to vote its shares of MGM. In early 1992 the Delaware Chancery Court confirmed CLBN's voting rights with respect to PCC's common stock.
 -0- 4/16/92
 /CONTACT: Fredric Spar of Kekst and Company, 212-593-2655, for Credit Lyonnais Bank Nederland/ CO: Credit Lyonnais Bank Nederland, N.V.; MGM-Pathe Communications Co. ST: IN: FIN SU:


KD -- NY110 -- 9538 04/16/92 17:19 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 16, 1992
Words:394
Previous Article:EIGHT COLLINS & AIKMAN SPECIAL SCHOLARS NAMED
Next Article:SFP PIPELINE HOLDINGS INC. TO MAKE QUARTERLY INTEREST PAYMENT


Related Articles
CREDIT LYONNAIS FILES MOTION TO RE-OPEN EVIDENCE IN DELAWARE LITIGATION
DELAWARE COURT GRANTS CREDIT LYONNAIS MOTION TO RE-OPEN EVIDENCE IN PATHE COMMUNICATIONS LITIGATION; HEARING SCHEDULED FOR DEC. 18
CREDIT LYONNAIS' CONTROL OF PATHE COMMUNICATIONS BOARD CONFIRMED
DELAWARE CHANCERY COURT ENTERS FINAL JUDGMENT ON REMOVAL OF PARRETTI DIRECTORS OF PCC
MGM-PATHE MANAGEMENT SAYS DAY-TO-DAY BUSINESS ACTIVITIES UNAFFECTED BY CREDIT LYONNAIS BANK NEDERLAND FORECLOSURE
CREDIT LYONNAIS BANK ANNOUNCES SUFFICIENT PATHE CONSENTS
PATHE COMMUNICATIONS AND CREDIT LYONNAIS AGREEMENT
CREDIT LYONNAIS SUBSIDIARY ACQUIRES STOCK OF MGM PATHE COMMUNICATIONS
CREDIT LYONNAIS BANK NEDERLAND N.V. TENDER OFFERS FOR PATHE EXPIRE
CREDIT LYONNAIS BANK: 2,809,739 PATHE COMMON SHARES TENDERED

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters