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DELAWARE COURT AFFIRMS PARRETTI OUSTER FROM MGM

 DELAWARE COURT AFFIRMS PARRETTI OUSTER FROM MGM
 CULVER CITY, Calif., Dec. 30 /PRNewswire/ -- Citing no fewer than


nine "materially disruptive" breaches of the agreements by which Italian financier Giancarlo Parretti ceded control of MGM-Pathe Communications Co. last April, a Delaware judge today confirmed Parretti's removal from the MGM-Pathe board and his loss of control of the studio. The decision followed a lengthy trial that had recently been reopened for additional evidence, which Parretti did not contest, that Parretti had faked a key document he had relied upon and testified about in the trial.
 In an 89-page opinion replete with instances in which he found Parretti's testimony on material issues "untruthful," Chancellor William Allen criticized Parretti's financial dealings in connection with his acquisition of MGM in 1990 and his "efforts to continue to dominate and control the management of MGM" under Chief Executive Alan Ladd, Jr. Ladd became MGM chairman and chief executive officer in April 1991, pursuant too a series of written agreements under which Parretti had given up control of the studio in exchange for a multi-million dollar cash infusion from studio lender Credit Lyonnais Bank Nederland, N.V. (CLBN) that rescued MGM from bankruptcy.
 "This is an overwhelming victory for MGM and Credit Lyonnais," Ladd said. "Now that this issue has been definitively resolved, we are anxious to get back to our original business of creating quality entertainment product. With the support of Credit Lyonnais, we intend to see that the lion roars again."
 MGM-Pathe President Charles Meeker added" "Chancellor Allen's forceful decision closes the door on this troubled period of MGM's existence. With continued strong backing from Credit Lyonnais, the way is now open for MGM to reestablish itself as the greatest international name in filmed entertainment."
 Howard L. Weitzman, the lead trial attorney for MGM-Pathe, in commenting on the victory, stated, "The court accepted my characterization of Parretti as being less than truthful and found that Parretti did not act in good faith. The Ladd management team can now run the studio without the interference of Parretti and the cloud of uncertainly looming."
 Calling Ladd management "resolute in dealing with Mr. Parretti's demands" for continued control, Allen's opinion said Parretti "deliberately pushed matters to a crisis" and led to CLBN's exercise in June of its rights to vote Parretti's MGM stock and remove Parretti, his wife Maria Cecconi and Yoram Globus from the MGM board. CLBN's actions followed a June 14 meeting of the Parretti directors of MGM and were the culmination of nearly two months of intimidating meetings and a "war of memos" between Parretti and Ladd management as to who actually was in charge of MGM and its worldwide subsidiaries.
 Accepting as truthful the testimony of MGM President Meeker that Parretti had repeatedly told him in early June, "I am crazy....I am very dangerous, Meeker. Do you understand that, Meeker? I'm very dangerous," Allen found Parretti's removal proper under the written agreements.
 Allen stated that the two sides' versions of the facts surrounding key transactions and occurrences were so irreconcilable that when forced to accept one side it was on the credibility of its witness alone. He consistently accepted the MGM and CLBN version, saying, "I have been forced to conclude that defendants'' principal witness, Giancarlo Parretti, did not give truthful testimony when he testified under oath in this court."
 Parretti, reported to be under investigation by Italian authorities for tax evasion, was reportedly arrested at a Rome airport over the weekend while waiting to board a plane for Tunisia. Parretti's legal right to remain in the United States, extended because of the pendency of the trial, has expired and it was uncertain that Parretti would or could return to this country.
 MGM-Pathe Company is involved in the worldwide production and distribution of motion picture and television programs and operates theatre chains in the U.K. and Europe. Pathe Communications Corp. (NYSE: PCC) is a holding company.
 -0- 12/30/91
 /CONTACT: Craig A. Parsons or Cecilia A. Wilkinson of Rifkind Pondel & Parson, 310-207-9300, for MGM-Pathe Communications/
 (PCC) CO: MGM-Pathe Communications Co. ST: California IN: ENT SU:


PS -- NY049 -- 5795 12/31/91 00:04 EST
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Publication:PR Newswire
Date:Dec 31, 1991
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