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FRANK MANCUSO NAMED CHAIRMAN AND CEO OF MGM; CREDIT LYONNAIS STRENGTHENS MGM FINANCIAL POSITION

 LOS ANGELES, July 26 /PRNewswire/ -- Credit Lyonnais and the Board of Directors of Metro-Goldwyn-Mayer, Inc. today announced a series of actions as part of their plan to revitalize MGM as a major force in the entertainment industry. The Board of MGM today named Frank G. Mancuso as chairman and chief executive officer of the company. It was also announced that MGM's companion studio, United Artists, will again become an active motion picture production unit, supplying filmed entertainment for the MGM distribution network.
 To strengthen MGM's financial position and to support an expanded program of film and television production, Credit Lyonnais also announced the following steps:
 --The increase of the available credit line to total $400 million to support a full program of film and television production at both MGM and UA;
 --Assumption by MGM's parent, MGM Holdings, Inc., of $800 million of existing MGM bank debt, thereby releasing MGM from its obligations in respect of such debt and increasing MGM's equity account by the same amount; and,
 --Future redemption of MGM, Inc.'s $221 million face amount 13 percent subordinated debentures substantially funded by the sale of MGM's cinema assets to MGM Holdings, Inc., which will further reduce interest expense.
 "With these actions, we believe MGM is positioned for a giant leap forward in its progress toward full restoration as a major motion picture production and distribution company," said Francois Gille, Director General of Credit Lyonnais, S.A., which through its wholly owned subsidiary, MGM Holdings, Inc., controls MGM. "We are delighted that Mr. Mancuso has joined MGM, bringing with him proven leadership skills and exceptional judgement, talent and experience in all phases of the entertainment industry.
 "The financial initiatives we are implementing will enable MGM to go forward with a healthy balance sheet and the flexibility to pursue a full business agenda which includes the revival of the company's valuable asset, United Artists. When these various steps are implemented, MGM will have a debt-to-equity ratio of approximately 1:2.
 "All of these actions should underscore one fundamental point: the long-term commitment of Credit Lyonnais to the future of MGM. Although U.S. banking laws require that the Bank ultimately divest this asset, we are first committed to fully rebuild MGM as the best way to maximize the value of our investment. When that objective is achieved, it is our intention that any change of ownership take place in a manner that will best assure the continuing vitality of MGM as an entertainment industry leader.
 "In our actions to reinvigorate a venerable American institution and to create a healthier asset for the Bank, we benefit greatly from the valuable counsel of Michael Ovitz and the Creative Artists Agency team. We look forward to continuing this most productive relationship.
 "We are confident that our working with MGM's management and its dedicated employees will assure this company a future as bright as its illustrious past."
 Frank Mancuso, 60, has spent more than three decades in the entertainment industry, most recently serving as chairman and chief executive officer of Paramount Pictures. Among the major films released during his tenure at Paramount were Top Gun, Ghost, Crocodile Dundee, Indiana Jones and the Last Crusade, Fatal Attraction, The Untouchables and Beverly Hills Cop II.
 -0- 7/26/93
 /CONTACT: Fred Spar of Kekst and Company, 212-593-2655, for Credit Lyonnais and MGM/


CO: Credit Lyonais; Metro-Goldwyn-Mayer ST: California IN: ENT SU: PER

LG -- NY084 -- 5793 07/26/93 14:54 EDT
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Publication:PR Newswire
Date:Jul 26, 1993
Words:575
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