Credit Lyonnais Trims Some Tinsel
Credit Lyonnais, the giant French bank, is moving to clean up some of the worst of its more than $1 billion in loans to Hollywood companies. In a filing with the Securities & Exchange Commission, Pathe Communications acknowledges that it is being pressed by Credit Lyonnais to sell as much as 40% of the company to pay down a $395 million loan. If Pathe can't find a buyer, the bank may take control of the company.
In another deal, Credit Lyonnais, which has $99 million in loans to Nelson Entertainment, forced the video and film producer to strike a deal with New Line Cinema. Under the agreement, New Line will pay $15 million in cash and $1.6 million in stock and options for distribution rights to Nelson's movies. Of that sum, $12 million goes to Credit Lyonnais, which wants Nelson to find a buyer for the entire company by yearend.