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PATHE INFORMS DELAWARE COURT OF POSSIBLE DEAL TO ELIMINATE CREDIT LYONNAIS DEBT

 PATHE INFORMS DELAWARE COURT OF POSSIBLE DEAL
 TO ELIMINATE CREDIT LYONNAIS DEBT


Bank Balks at Agreement on Essential Terms to Satisfy Debt; Parretti
 Tells Court That He Will Not Contest Disputed Document
 WILMINGTON, Del., Dec. 13 /PRNewswire/ -- Pathe Communications Corp. (NYSE: PCC) and Giancarlo Parretti have advised the Delaware Chancery Court that in meetings between Parretti, representatives of Credit Lyonnais and third parties, essential economic terms had been agreed upon for the sale of a majority of Pathe Communications shares which would have satisfied certain indebtedness of Pathe to Credit Lyonnais and freed up remaining Pathe shares.
 In a letter filed this morning with Chancellor William T. Allen, Pathe attorneys said that such a transaction would have carried with it ownership and control of MGM-Pathe Communications, Pathe's 98.5 percent-owned subsidiary, and would have provided for infusion of new capital into MGM.
 The terms of the potential agreement included an investment of approximately $1 billion, including more than $300 million of working capital.
 The attorneys also noted in the letter that they have been advised by representatives of Credit Lyonnais that such representatives "apparently seek to defer any transaction for control and ownership of MGM, which it would appear relates in some way that we do not understand to the continuation or conclusion of this litigation."
 "We have the opportunity to retire the Credit Lyonnais obligation and yet they appear to want to delay the transaction," said Parretti. "I believe the only reason that they are attempting to defer the transaction is in the hope of a favorable judgement from the court which might enable them to obtain the right to sell additional shares in the company and make more money at the expense of other shareholders. We believe the ruling would be in our favor but regardless, with our retiring the CLBN and CL debt, the issues should be ended. If we obtain the bank's cooperation, we believe we can conclude such a transaction."
 In the letter, the attorneys said that, to conclude the potential transaction as promptly as possible, Pathe will not contest the assertion of a lack of authenticity of a disputed document, a hearing on which is scheduled for Dec. 18, and would withdraw the exhibit and any reliance upon it the chancellor may have considered, permitting the court to take the entire case under advisement for a rapid decision.
 Pathe is a holding company whose chief asset is 98.5 percent of the stock of MGM-Pathe Communications Co.
 -0- 12/13/91
 /CONTACT: Richard S. Kline or Gregory F. Romano of Berhemer Kline Golin/Harris, 213-623-4200, for Pathe Communications/
 (PCC) CO: Pathe Communications ST: California IN: ENT SU:


SE-DM -- LA023 -- 2514 12/13/91 16:30 EST
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Publication:PR Newswire
Date:Dec 13, 1991
Words:452
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