NEW YORK, N. Y., December 27, 1996 -- Marvel Entertainment Group, Inc. (NYSE: MRV) today announced that following the Company's filing of a voluntary chapter 11 petition this morning,
the U.S. Bankruptcy Court for the District of Delaware in Wilmington has approved Marvel's request to have access to an initial portion of the $100 million debtor-in-possession (DIP) financing committed by Chase Manhattan Bank.
The Court also approved several other "first-day orders" which, among other things, allow Marvel to continue providing salaries, wages and benefits to all of its employees and independent contractors; to pay all of its bills, including those submitted prior to the filing, on time and in full; and to continue funding Marvel's new business initiatives.
"We are pleased that the court has approved all these motions, which will ensure that we can continue all business operations without interruption," said Scott Sassa, Chairman and Chief Executive Officer of Marvel. "By receiving immediate access to a portion of the $100 million Chase financing, we are assured of sufficient liquidity as we continue our initiatives aimed at returning the Company to sustained profitability." A hearing for final court approval of the entire $100 million DIP facility has been scheduled for January 22, 1997.
CONTACT: Gary Fishman, for Marvel Investor Relations, 212-685-6890.
Marvel informational website can be found at http://www.marvelonline.com.
A few days later, David Schreff, Marvel's chief operating officer (COO) issued a statement dated December 27,1996 that reads like a brief FAQ. See below..............
Statement Regarding Marvel's Financial Restructuring From David Schreff, President and COO Marvel Entertainment Group, Inc.
There will be absolutely no interruption of our publishing schedule or our development plans for TV and feature film, interactive products and services, licenses and sponsor partnerships, themed restaurants and theme park attractions. X-Men and Spider-Man on the Fox Kid's Network continue to be top rated animated series on television. Marvel Comics continues to dominate the business with a 37% market share and 16 of the top 20 comics on a monthly basis. Today's action positions us to build Marvel into an even stronger, more focused character creation company for today's fans, and for those of the future.
Contact: Contact: Sandra Padnos -- Public Relations, Marvel Entertainment Group, Inc. (212) 576-8552
My thoughts...... Comics are an entertainment medium. But comics are also BIG business. In addition to comic book characters, Marvel also owns Fleer and Skybox Trading cards, Toy Biz toys, Panini stickers, Marvel interactive software, all the cartoons see on TV with Marvel characters and, last but not least, Marvel owns America On Line Internet access provider.
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