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Holdings). MGM Group Holdings contributed substantially all its
assets (including its film and television assets) and some
liabilities to a new subsidiary, which was later named Metro-
Goldwyn-Mayer, Inc. (New MGM).19
In the 1993 restructuring, MGM’s debt to CLBN was divided
between MGM Group Holdings and New MGM. MGM Group Holdings
retained approximately $960 million of the debt, which was
restated and consolidated in an amended, restated, and
consolidated credit agreement with CLBN. MGM Group Holdings
executed a $965,904,188.96 note dated December 30, 1993, which
was due and payable on July 15, 1997. This $966 million debt was
unsecured by New MGM’s assets; $800 million of the principal
amount was non-interest bearing.
As of December 31, 1993, New MGM owed CLBN approximately
$618 million in principal and interest. New MGM and CLBN entered
into an amended, restated, and consolidated credit agreement (the
New MGM credit agreement) in which the loans that New MGM assumed
in the 1993 restructuring were consolidated and converted into a
term loan with a due date of July 15, 1997 (the CLBN term loan).
In accordance with the 1993 restructuring, New MGM and
Credit Lyonnais entered into a working capital agreement dated
19 As part of the 1993 restructuring, MGM Group Holdings
Corp. retained its accrued tax attributes, including its accrued
net operating losses (NOLs). The 1993 restructuring included the
appointment of a new management team under Frank Mancuso as chief
executive officer.
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