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Nothing comic for Marvel
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November 22, 1996: 9:35 a.m. ET
Investor Perelman says bankruptcy is imminent without restructuring
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NEW YORK (CNNfn) - Marvel Entertainment Group Inc. could be forced to file for bankruptcy protection unless bondholders approve a massive reorganization plan, a published report said Friday.
The Wall Street Journal reported that representatives of investor Ronald O. Perelman, whose Andrews Group owns 80 percent of the company, proposed a plan that would restructure the company's four main business units in a bold effort to reverse operating losses.
But the plan is not without controversy.
According to the newspaper, it would dilute the 20 percent of the stock Andrews Group does not control and would also turn principal bondholders into stockholders. Up to $900 million in bonds was recently secured with Marvel's common stock.
Marvel is best known as a comic book company. It also operates Marvel Fleer/SkyBox trading cards, as well as an interactive unit, an Italian sticker-and-adhesive company called Panini and toy manufacturer Toy Biz Inc.
All of the units, with the exception of Panini, have had financial troubles, collectively reporting a drop in revenues from $647 million to $547 million this year. The comic book division has seen its market share decline between 25 percent and 30 percent, with most predictions suggesting additional declines.
The Journal said part of the rescue plan calls for Marvel to purchase the remaining shares in Toy Biz it does not already own. Toy Biz reported $257 million in sales and would help ease cash flow concerns. 
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