Marvel Bondholders Win Court Round

Takeover financier Carl Icahn and fellow bondholders of Marvel Entertainment Group, who own $894 million in bonds secured by 79% of Marvel shares, can foreclose on the stock despite the company’s Chapter 11 bankruptcy proceeding, a bankruptcy judge in Wilmington, Del., ruled. The decision doesn’t mean the bondholders have won control of Marvel. The court is still considering the Marvel reorganization plan, and Judge Helen Balick will issue an official order today. Under the reorganization plan by financier Ronald Perelman, who controls Marvel, Perelman would put up $365 million and receive about 81% of the restructured Marvel’s shares. Icahn, who owns 25% of the bonds, and some other bondholders have suggested an alternative in which they would put money into the company in return for control.