Judge OKs Marvel DIP Financing Pending Modifications; Company Will Continue to Meet All Obligations in Full, on Time
NEW YORK, N. Y., January 22, 1997 -- Marvel Entertainment Group, Inc. (NYSE: MRV) today said the U.S. Bankruptcy Court for the District of Delaware in Wilmington approved Marvel's $100 million debtor-in-possession (DIP) credit agreement with a lender group headed by Chase Manhattan Bank, subject to two modifications. Pending the entry of the final order, Marvel said it has access to sufficient cash to meet all of its obligations.
Judge Helen S. Balick also rejected and overruled a request by holders of Marvel holding company bonds that Marvel accept an alternative source of DIP financing presented by the bondholders.
Marvel said it expects to submit an order by Friday consistent with Judge Balick's ruling related to the DIP credit agreement. The judge determined that the event of default in the DIP credit facility related to Ronald O. Perelman's loss of control of Marvel be the same as the loss of control default provision in Marvel's pre-Chapter 11 secured bank facilities. The judge also determined that the event of default concerning the Toy Biz license with Marvel be modified so that a default would occur only if the license were rejected by Marvel, rather than a default occurring upon the mere filing of a motion requesting such a rejection.
Yesterday, Judge Balick denied a motion made by certain Marvel holding company bondholders to change the schedule for the confirmation of Marvel's Chapter 11 plan of reorganization. Accordingly, the confirmation hearing is still scheduled for March 7, 1997.
As previously reported, Marvel has received court permission to pay salaries, wages and benefits to all of its employees and independent contractors on an ongoing basis; to pay all of its bills, including those submitted prior to the filing, on time and in full; and to continue funding its joint venture expenses.
CONTACT: Gary Fishman, Investor Relations, 212-685-6890.
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Judge OKs Final Order for Marvel $100 Million DIP Financing
NEW YORK, N. Y., January 24, 1997 -- Marvel Entertainment Group, Inc. (NYSE: MRV) reported that Chief Judge Helen S. Balick of the U.S. Bankruptcy Court for the District of Delaware in Wilmington signed a final order today approving Marvel's $100 million debtor-in-possession (DIP) financing provided by Chase Manhattan Bank.
The DIP financing will be available to Marvel for the expected duration of its Chapter 11 reorganization and will enable the Company to continue meeting all of its operating needs. As previously reported, Marvel has received court permission to pay salaries, wages and benefits to all of its employees and independent contractors on an ongoing basis; to pay all of its bills, including those submitted prior to the filing, on time and in full; and to continue funding its joint venture expenses. As in the existing Marvel credit agreements with Chase, it is a default of the DIP agreement if any one other than Ronald O. Perelman controls Marvel.
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