Marvel Entertainment Group Inc. emerged from bankruptcy as a unit of Toy Biz Inc., ending a nearly two-year effort to reorganize the world’s largest comic book publisher, officials said.
Toy Biz officials said they are changing the company’s name to Marvel Enterprises Inc. to complement the combination of the comic book company and the New York-based toy maker, which produces action figures based on Marvel characters such as Spiderman and Captain America.
New York-based Marvel filed for Chapter 11 protection from creditors in Delaware in December 1996 amid sliding sales of its comic book, stickers and sports trading card lines. In July, a judge approved Toy Biz’s $238-million reorganization plan for the struggling company.
Under the plan, Marvel’s lenders will receive $230 million in cash for their more than $700 million in claims. Unsecured creditors are to get as much as 1.75 million in stock warrants in the new company, along with $8 million in cash.
Former Marvel shareholders stand to receive warrants to buy as much as 2.8 million shares of the new company at $12 per share, and any recovery from a lawsuit against former controlling shareholder Ronald Perelman.
Perelman, a New York financier, was ousted from control of Marvel by investors led by rival Carl Icahn. Marvel officials later filed suit against Perelman, alleging he was responsible for Marvel’s collapse and bankruptcy filing.