The trials over Giancarlo Parretti’s takeover of MGM continue.
In a new move by one of the creditors seeking damages against Credit Lyonnais in connection with Parretti’s financing of the studio, Century Insurance Ltd. is back in court.
Century had been one of 10 creditors that sought to push Metro-Goldywn-Mayer Inc. into Chapter 7 bankrupcty liquidation in 1991. While that move failed, Century continues to claim it is owed millions of shares in MGM as part of a deal with Parretti.
In a proposed amended complaint, to be filed in L.A. Superior Court, Century now claims that Credit Lyonnais has engaged in racketeering and fraud in connection with Parretti’s transaction.
Century’s current suit dates back to the fall of 1990, when Parretti allegedly induced Century CEO Donald Davies to write a guarantee bond insuring a $ 175 million loan from Credit Lyonnais. Century was to receive 30 million shares of various companies, including 10 million in MGM, as collateral for the bond.
In January 1991, Century filed suit against Credit Lyonnais in its home in the Cook Islands, claiming Parretti never controlled the shares that were pledged as collateral.
Century’s proposed amended complaint would seek $ 540 million in compensatory damages and punitive damages of $ 500 million.
The trial is set for Feb. 1 before Judge Gary Klausner in Los Angeles Superior Court.