Marvel Entertainment Group, New York, filed for voluntary bankruptcy under Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. According to a release issued Dec. 27, the filing will enable Marvel to pursue a recapitalization and refinancing plan within the next few months. A proposed financial restructuring will allow the Andrews Group to invest $365 million in new Marvel equity, then enabling Marvel to make Toy Biz a wholly-owned Marvel subsidiary. In addition to the chapter 11 filing, a bank group led by Chase Manhattan Bank will offer Marvel $100 million of debtor-in-possession financing to enable the company to meet operating costs and make some debt repayments.
In addition to Marvel, companies that publish, license, and distribute trading cards for Marvel also filed for Chapter 11 on Dec. 27. However, neither Marvel's Italian subsidiary, Panini, nor its Restaurant Ventures affiliate filed for Chapter 11.
Copyright December 1996, Crain Communications Inc.