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possibly in excess of $200 million; however, any use of the NOLs
would be severely limited by MGM Group Holdings’ absence of
income and the interest owed on its debts, as well as the NOL
limitations under section 382. These assets provided no
meaningful basis for repaying the $79 million receivable, even
under the best of estimates. Despite these infirmities, Credit
Lyonnais released New MGM from its $79 million debt obligation
and caused MGM Group Holdings to assume this amount.
MGM Group Holdings had a long track record of failing to
repay the loans and advances that the Credit Lyonnais group had
made to it. Following the 1993 restructuring, MGM Group Holdings
retained approximately $962 million in debt that the MGM
companies owed to the Credit Lyonnais group. After additional
advances in 1994 and 1995, MGM Group Holdings owed approximately
$975 million in indebtedness to CLBN, including some capitalized
interest. This amount remained owing as of October 10, 1996.
MGM Group Holdings paid no principal amount of this indebtedness;
there is no evidence that it was ever called upon to make any
repayment.
For many years, MGM Group Holdings paid no interest on its
debt obligations to the Credit Lyonnais group. In connection
with the 1993 financial restructuring of MGM, MGM Group Holdings
and CLBN agreed that $800 million of MGM Group Holdings’ debt
obligations would be noninterest bearing. MGM Group Holdings
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