December 1996 Marvel Entertainment Group filed for bankruptcy. Marvel came up with a reorganization plan that meant that Perelman‚ Marvel’s largest shareholder‚ would invest $365 million in exchange for 427 million newly issued shares. Carl Icahn‚ one of the main bondholders‚ did not support this plan. On March 7‚ 1997‚ a confirmation hearing was scheduled at which both parties would vote on the proposed reorganization plan. In this case study‚ we will first look at why Marvel filed for bankruptcy
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[pic] Case: Marvel Entertainment Group Corporate Finance 1 Marvel’s bankruptcy In December 1996‚ Marvel Entertainment Group and the three holding companies entered bankruptcy. Why did they file for it and why were the problems caused; bad luck‚ bad strategy or bad execution? And did Perelman’s pre 1997 decisions contributed to Marvel’s downfall? In our opinion‚ the bankruptcy of Marvel was caused by a variation of problems. These problems can be divided
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Marvel Entertainment Group Question 1 Filling Chapter 11 could help Marvel to commence the restructuring plan in a more smoothing pattern. As Marvel was a highly leveraged company with a significant number of dissenters‚ bondholders and vulture investor including Carl Icahn would not easily agree on the restructuring plan. Under Chapter 11‚ reorganization plan will bind dissenting creditors and shareholders to arrive at an agreement easier. In fact‚ upon the filing of a Chapter 11‚ an
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Bankruptcy and Restructuring at Marvel Entertainment Group 1. Why did Marvel file for Chapter 11? Were the problems caused by bad luck‚ bad strategy‚ or bad execution? What is the amount of debt of MEG (the operating company) and the Marvel Holding Companies (Marvel owners)? The Chapter 11 bankruptcy provided an opportunity for all the major stakeholders to evaluate their options regarding their investment and control of Marvel. Bankruptcy alleviated Marvel’s immediate cash shortage‚ protected
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Case Study of Bankrupt and Restructuring at Marvel Entertainment Group 1) Why is Marvel in financial distress? Bad luck? Bad strategy? Bad implementation? When possible‚ back your claims with numbers. There are several financial problems that compromise Marvel’s financial distress. Each problem can be explained by one or several reasons. • Overcollateral: The first financial problem of Marvel is that huge amount of shares are collateralized as its holding companies’ debts. These debts were
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| Analysis of Bankruptcy and Restructuring at Marvel Entertainment Group | Case Study | | Team 8Anthony BorskiShawn KuehnHeather LuebbersVignesh Veer | 11/26/2012 | 1. Why did Marvel file for Chapter 11? Were the problems caused by bad luck‚ bad strategy or bad execution? Marvel filed for Chapter 11 because they couldn’t adequately restructure their debt. In 1996 they got to a point where they were going to violate bank loan covenants and so they needed to restructure their
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Marvel Entertainment Inc. BUSINESS STRATEGY Marvel Entertainment Inc. is a media and entertainment company. The entertainment and the media they provide are based on characters like Spider-man‚ Spider-Man‚ Incredible Hulk‚ Fantastic Four‚ X-Men‚ Blade‚ Captain America and so forth. Their primary operating segments include Publishing‚ Licensing and Film Production. The Licensing segment earns revenues from selling rights to movies‚ television production companies‚ video game publishers‚ merchandise
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CASE SEMINAR CORPORATE FINANCE Marvel Enterntainment Group Bankruptcy and Restructuring May 20‚ 2013 Audrey Huai Kuan Khoo Chen-Fong Lin Marcin Sadowski Hasmik Saturyan Question 5 (Homework) As a public debt holder‚ would you vote for or against the proposed restructuring plan? Why‚ or why not? How would you expect Carl Icahn and the other secured and unsecured creditors of Marvel to vote? Hint: What options do public debt holders have‚ and how much would they gain under each alternative
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MARVEL ENTERTAINMENT GROUP Bankruptcy and restructuring Introduction Marvel entertainment group was started by Martin Goodman in 1939. It originally was a comic book business‚ known as Marvel Comics now. We have no way to forget the images of X-men‚ Spider-Man‚ and Thor. Marvel Entertainment Group has had a glorious history‚ and a dominant position in the comic market. However‚ this glorious empire regretfully elapsed in the end. The historical rise and fall influences not only comic fans’
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Bankruptcy From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search "Bankrupt" redirects here. For the album by Phoenix‚ see Bankrupt!. Notice of closure attached to the door of a computer store the day after its parent company declared "bankruptcy" (strictly‚ put into administration) in the United Kingdom Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions‚ bankruptcy is imposed by a court order‚ often initiated
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