Marvel Bankruptcy - The Final Word?
As of October 1, 1998 Toy Biz has bought Marvel Comics. Is this the final chapter? Only your accountant knows for sure!!!
Thursday October 1, 5:32 pm Eastern Time
Company Press Release
SOURCE: Toy Biz, Inc.
Toy Biz and Marvel Trustee Announce Consummation of Marvel's Plan of Reorganization and Combination of Marvel Into Toy Biz
NEW YORK, Oct. 1 /PRNewswire/ - Toy Biz, Inc. (NYSE: TBZ - news) and Marvel Entertainment Group, Inc. (OTC Bulletin Board: MRVGQ - news) announced today that the plan of reorganization for Marvel Entertainment Group that was proposed by Toy Biz and Marvel Entertainment Group's senior secured lenders has been consummated and that Marvel Entertainment Group has merged with, and become a wholly-owned subsidiary of, Toy Biz. Toy Biz also announced that it has changed its name to Marvel Enterprises Inc. and that the trading symbol for its common stock on the New York Stock Exchange has been changed to "MVL."
The plan of reorganization for Marvel Entertainment Group was confirmed on July 31, 1998, by the United States District Court for the District of Delaware, which has been administering the Marvel Entertainment Group Chapter 11 bankruptcy cases.
Pursuant to the plan, holders of fixed senior secured indebtedness of Marvel Entertainment Group will receive 7,900,000 shares of 8% Cumulative Convertible Exchangeable Preferred Stock of Marvel Enterprises, 13,100,000 shares of Marvel Enterprises common stock, up to approximately $232 million in cash (including approximately $81 million in payment of debtor-in-possession financing) and an interest in a litigation trust which will pursue various bankruptcy avoidance and related litigation claims currently held by Marvel Entertainment Group. Each share of the 8% Cumulative Convertible Exchangeable Preferred Stock is convertible into 1.039 shares of Marvel Enterprises common stock.
As previously announced, unsecured pre-petition creditors of Marvel Entertainment Group will receive up to $8 million in cash, four-year warrants to purchase up to 1,750,000 shares of Marvel Enterprises common stock at a price of $17.25 per share, three-year warrants to purchase 832,500 shares of Marvel Enterprises common stock at a price of $12.00 per share, six-month warrants to purchase 936,563 shares of the 8% Cumulative Convertible Exchangeable Preferred Stock at a price of $10.65 per share (subject to increase based on the issue date of the warrants), four-year warrants to purchase 1,618,750 shares of Marvel Enterprises common stock at a price of $18.50 per share, an interest in the litigation trust created to pursue bankruptcy avoidance claims and an interest in a second trust created to pursue litigation claims against Ronald O. Perelman, who formerly controlled Marvel Entertainment Group, and various related entities and individuals.
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