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I. Sealion Settlement
In November 1995, Credit Lyonnais and Sealion entered into a
settlement agreement whereby: (i) Sealion assigned its 1.5-
percent interest in MGM Group Holdings stock to Credit Lyonnais,
and, in exchange, (ii) Credit Lyonnais accepted as repayment of
all sums that Sealion owed to it, the assignment to Credit
Lyonnais of the entire claim that Sealion held against Pathe
pursuant to its loan agreement with Pathe.
J. Credit Lyonnais Decides To Sell New MGM
As of 1994, MGM was not saleable; its filmed entertainment
business was still in financial disarray. Nevertheless, after
the 1993 restructuring and after nearly 2 years under its new
management team, MGM made a fair recovery. The management team’s
actions began bearing fruit with some successful film releases
such as “Stargate”, “Get Shorty”, and the next two “James Bond”
movies. MGM started to resemble a real operating motion picture
company once again.
Nonetheless, Credit Lyonnais’s investment in MGM was
considerable and never ending. As time went on, Credit Lyonnais
became very pessimistic about recovering its investment in MGM;
certainly after Credit Lyonnais transferred ownership of the MGM
stock to Consortium de Realisation (CDR) in 1995, Credit Lyonnais
had much less interest in putting money into MGM’s movies. As a
result, the number of movies in production at MGM diminished
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