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Icahn counters Marvel bid
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April 29, 1997: 6:55 p.m. ET
Bondholders file own reorganization in attempt to stop Perelman plan
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NEW YORK (CNNfn) - A group of dissident bondholders of Marvel Entertainment Group Inc., led by investor Carl Icahn, launched a counter-attack Tuesday to scuttle a bankruptcy reorganization plan detailed Monday by the comic book giant and Toy Biz Inc.
Icahn's group said it filed its own reorganization plan in the U.S. Bankruptcy Court in Delaware, which includes a $365 million rights offering. The plan also proposed the creation of a transition team to revive the company, which would be led by former Marvel executive Joseph Calamari, the bondholders said.
The latest plan is an effort to stop a rival plan brokered by Icahn rival financier Ron Perelman and Marvel's bankers including Chase Manhattan.
At the heart of the plan is a guarantee that all debts will be paid in full using proceeds from the proposed $365 million rights offering.
High River Limited Partnership, controlled by Icahn, Westgate International L.P. and United Equities Commodities Co. will guarantee the offering through a standby purchasing agreement.
The proceeds of the offering would be used to retire Marvel's $100 million credit line and repay in full unsecured creditors. Remaining funds would be used to replenish Marvel's working capital and restore the company to financial and operational health.
The filing comes one day after Perelman and Marvel's bankers including Chase Manhattan reached a deal to sell Marvel's comic book and entertainment operations to Toy Biz , which is controlled by Isaac Perlmutter.
Toy Biz holds the licenses to some of Marvel's characters such as Spiderman and the Incredible Hulk.
Earlier in April, Perlmutter, who owns 35 percent of Toy Biz, presented Marvel's bank lenders with an offer to buy the comic book company. The Marvel deal would flip the tables somewhat, because Marvel owns over 26 percent of Toy Biz.
Under the Marvel plan, its Fleer/SkyBox and Panini subsidiaries would be spun off to the creditor banks, and according to a source close to Toy Biz, would likely be sold.
The latest plan from the bondholders is essentially the same plan they filed in March. A bankruptcy court judge granted a temporary restraining order blocking that plan.
The company and its bondholders are to go to federal appellate court Thursday where the bondholders are seeking to lift the restraining order.
Officials from Marvel were not immediately available to comment.
Marvel filed for Chapter 11 bankruptcy protection in December.
Shares of Marvel Entertainment lost 12.5 cents to close at 2-1/4 Tuesday. Toy Biz shed 1/4 to end at 10.
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Marvel Comics
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