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MGM RESTRUCTURING APPROVED

 SANTA MONICA, Calif., Oct. 12 /PRNewswire/ -- Metro-Goldwyn-Mayer Inc. (MGM) and its 98.5 percent indirect shareholder Credit Lyonnais today announced approval by MGM's Board of Directors and Credit Lyonnais of the specific measures to be taken to achieve the balance sheet restructuring of MGM announced in July 1993.
 Substantially all of the assets and businesses of the existing MGM ("Old MGM") will be transferred to a newly incorporated subsidiary named Metro-Goldwyn-Mayer Inc. ("New MGM"). At the same time, New MGM will assume only certain of the outstanding indebtedness of Old MGM. Approximately $820 million of debt of Old MGM owing to Credit Lyonnais Bank Nederland ("CLBN"), as well as approximately $140 million of debt incurred by Old MGM to repurchase MGM's 1996 subordinated bonds, will remain at Old MGM and not be assumed by New MGM.
 In a related transaction, on Sept. 30, 1993, Old MGM sold its European cinema assets to an affiliate of Credit Lyonnais for a purchase price of $211 million to be paid in cash, a portion of which amount will be used to redeem Old MGM's remaining outstanding 1996 Subordinated bonds on Dec. 15, 1993, as previously announced. In addition, New MGM will become the borrower under the up to $400 million credit facility that Credit Lyonnais announced in July would be made available to fund MGM's business and operations.
 Upon completion of this restructuring, which is anticipated by mid December 1993, the balance sheet of New MGM, representing all of MGM's future business and operations, will be greatly improved. If the restructuring were to have been completed on Sept. 30, 1993, New MGM on a pro forma basis would have had a debt to shareholders' equity ratio of approximately 1-to-2.
 MGM is involved in the worldwide production and distribution of motion pictures and television programs.
 -0- 10/12/93
 /CONTACT: Craig A. Parsons of Pondel Parsons & Wilkinson, 310-207-9300/


CO: Metro-Goldwyn-Mayer Inc. ST: California IN: ENT SU: RCN

JB-MF -- LA033 -- 1226 10/12/93 15:23 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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