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and the loans and advances to those companies. CDR’s goal was to
realize whatever amount it could on those “bad” assets. Indeed,
with respect to MGM Group Holdings, CDR’s representative, Mr.
Jouannet, was assigned the task of realizing whatever value he
could in that company, as quickly as possible. Seemingly, this
objective would not be realized if Generale Bank and CLIS were
locked up in a film distribution business with the Ackerman
group.
The film rights that the banks ultimately contributed to
SMHC were culled from the 1,000-film CDR library. John Peters of
Epic Productions testified that these CDR films were acquired
from distressed companies to which Credit Lyonnais had lent
money. The films were acquired in numerous workouts,
bankruptcies, or other similar proceedings. Credit Lyonnais had
turned the films over to Epic Productions and Mr. Peters to
manage; however, by late 1995, Credit Lyonnais instructed Epic
Productions to begin planning the liquidation of the CDR library.
The whole focus of Epic Productions’ business operations became
“the ultimate liquidation of this 1,000 film plus library.” Mr.
Peters testified that Credit Lyonnais did not intend to pursue a
film distribution business with respect to these films. On the
contrary, its overall goal was to liquidate the film assets that
it had acquired.
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