Francois Gille, whose name has been synonymous with troubled state-owned French bank Credit Lyonnais for the past two years, has stepped down from the MGM/UA board and given up all other CL responsibilities, a spokesman for CL confirmed. The move comes eight months after Gille resigned as managing director of CL.
Sources said Gille, 58, cited health reasons. CL had no comment.
Gille, who was one of CL’s top executives, had led the bank’s team in developing a strategy to revamp Credit Lyonnais’ entertainment portfolio, which included the controversial move of bringing in talent agency Creative Artists Agency as a consultant. He oversaw the massive financial restructuring in July 1993 that led to the ouster of Alan Ladd Jr. and brought in Frank Mancuso Sr. as chairman and CEO.
Gille will be replaced on the MGM/UA board by another member of the bank, although that person has not been named. One likely replacement could be one of CL’s top attorneys in France.
The bank hired Jean Peyrelevade as chairman in 1993. CAA is still a consultant to CL.
The MGM board has eight members: Credit Lyonnais’ Guy DuFore, Alexis Wolkenstein and Alain Chaussard; one of CL’s White & Case attorneys, Sean Geary, Brad Wexler, Mancuso and Francis Ford Coppola.
Gille resigned as managing director of CL in May only one month after CL chairman Jean-Yves Haberer was fired and just days after the French Parliament appointed a committee to investigate financial loans made under Haberer.
Credit Lyonnais has taken a beating on its investments. The bank posted 1993 losses of $1.2 billion and French financial daily La Tribune said this month that the government may be called on to put up between $4.6 billion and $5.7 billion as part of the latest rescue package.
Gille was hired in December 1992 and served for 16 months. He had been a director of MGM/UA since 1994.