Three at MGM Accuse Parretti of ‘Meddling’

MGM-Pathe Communications Co.’s largest creditor called three of the company’s financial executives to the stand Tuesday in an effort to show that Giancarlo Parretti illegally meddled in the studio’s operations.

Credit Lyonnais Bank Nederland is trying to prove in a Delaware court that MGM owner Parretti violated an April agreement to stay clear of the company in return for $145 million in credit that rescued MGM from liquidation.

Gerard Van Zweiten, controller of Cannon Group Nederland, MGM’s Dutch subsidiary, testified that associates of Parretti ordered him during May to transfer $4 million to Pathe Italia, a Parretti-controlled company that is trying to establish a television network in Italy.

Van Zweiten said he found that the firm had only $1.6 million available. Under pressure from Parretti’s allies, he transferred the money as a loan to Pathe Italia on June 6.

Also testifying was Thomas Carson, MGM’s chief financial officer before Parretti’s takeover. He stayed on as an unofficial adviser and was subsequently rehired by Parretti’s successor, Alan Ladd Jr.

Parretti and associates continued to give advice and orders to employees, foreign and domestic, often countermanding those of Ladd and his managers, Carson said.

At two staff meetings in May, Parretti declared, “I’m the boss. I’m in control,” Carson said.

MGM is struggling under the weight of debt it incurred when Parretti bought it last November from financier Kirk Kerkorian for $1.3 billion.