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C. Generale Bank Nederland
In September 1995, CLBN was acquired by Generale Bank
Nederlands (Generale Bank).12 In this acquisition, CLBN’s “good”
and “bad” assets were transferred to Generale Bank. Credit
Lyonnais lent Generale Bank the money to purchase the “bad
assets” of CLBN, including the debt that MGM owed to CLBN. The
loan from Credit Lyonnais to Generale Bank was nonrecourse;
Generale Bank was not obligated to pay back the borrowed amount
except to the extent it realized anything on the bad assets.
III. Metro-Goldwyn Mayer, Inc.
A. History of MGM Before 1990
Metro-Goldwyn-Mayer, Inc., was established in 1924 as a
major film studio based in Los Angeles, California. Since its
establishment, Metro-Goldwyn-Mayer, Inc., has experienced
numerous reorganizations and name changes. For convenience, we
sometimes refer to Metro-Goldwyn-Mayer, Inc. (and its successors)
generally as “MGM”.
In 1981, MGM purchased United Artists (UA). The combined
entity then changed its name to MGM/UA Entertainment Co.
(MGM/UA). From 1981 through 1986, MGM/UA continued to produce
and distribute film and television products. In 1986, Kirk
12 The actual name is “Generale Banque.” We follow the
parties’ convention in referring to it in Anglicized fashion as
“Generale Bank.” Sometimes, in quoted material, the reference is
to “Generale Banque” or “GB.”
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