Business case. Marvel's wonderful resurrection (part 2)
In the first part of the case, I made a general description of the problem situation in which Marvel found itself in 1996 and told how it happened. In this, we consider the bankruptcy procedure and options for overcoming the crisis.
In 1996, Marvel reported a huge loss in the amount of $ 464 million. On October 8, 1996, Marvel announced a violation of the terms of its loan commitments due to a decrease in income. A third of the staff was fired. Then, on December 27, 1996, the publisher Marvel Comics filed for bankruptcy under the terms of Chapter 11 of the Bankruptcy Code. In accordance with this document, the company must pay all its bills and maintain normal repayment schedules and loan terms with all its suppliers and licensees.
Bankruptcy provided an opportunity for all major stakeholders to evaluate all possibilities of returning investment funds. In this part, we will define and consider possible scenarios for resolving the current situation for the three main stakeholders (besides them there were others):
Based on the consideration of different scenarios, we will try to evaluate the best option from the point of view of each participant from a strategic point of view and compare the options in order to assess who ultimately benefited from bankruptcy and who lost and whether the competing needs of various parties are reasonably satisfied.
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Bankruptcy immediately alleviates the company's cash deficit, protects against creditors and some litigation. However, it has a negative impact on employees, customers and suppliers. Marvel needs a plan to regain the trust of interested parties. Approximate options:
1. By the time of bankruptcy, Marvel consisted of five main divisions performing the following functions:
- Publication and sale of comics and other children's publications.
- Consumer products, display advertising, promotion and licensing of Marvel characters.
- Marketing and sales of collectible cards and stickers.
- Design, marketing and distribution of toys.
- Production and distribution of adhesives and confectionery.
Marvel can lose business, production capacity and strategic values. Non-core assets not directly related to the development of the main asset of Marvel (comic characters) will be sold. Their sale will allow Marvel to straighten out the business of the main business (comics and licensing).
Benefits
- focus on core business,
- the possibility of licensing characters for other companies (that is, business outsourcing of current non-core units),
- creation of a compact organizational structure,
- The ability to avoid future problems on non-core assets.
Risks
- lack of suitable buyers for non-core units,
- sale of units at prices below market,
- an increase in the volatility of Marvel's total income, as a more compact enterprise,
- Sale of non-core assets will lead to a decrease in the comic book market as a whole.
2. Marvel can be fully sold. The main business segments of the company, being on a decline in sales, would have been auctioned off with a very steep discount to the potential market value of the company.
Thus, it is likely that participants in the bankruptcy procedure are interested in finding alternatives, given the brand value and the history of the Marvel franchise.
Benefits
- Zero probability of any future losses for all shareholders (despite the fact that the chances of reviving the company had very little potential),
- the preservation of individual parts of the company, albeit by sale.
Risks
- loss of status in the comic industry,
- loss of a unique asset, inexperienced buyers will not be able to continue the development of the Marvel universe,
- partial or total loss of funds by interested parties,
- loss of the ability to restore the company,
- overcoming resistance to deprivation of property.
3. Marvel can be absorbed by another company, a potential competitor, such as DC Comics, Time Warner or Disney. These companies have experience. Another option would be to merge with the licensee Marvel. For example, with a toy company or film studio. The third target category could be some other companies wishing to use the Marvel heritage to strengthen their own business.
Benefits
- financial resources and expertise to preserve the Marvel universe,
- huge benefits for target companies to acquire,
- rescue Marvel characters,
- acceptable financial reimbursement to interested parties.
Risks
- the impossibility of determining a “qualified” company for a merger,
- the continued decline in the value of Marvel characters,
- loss of control over the company,
- contradictions with the buyer, which can lead to financial instability, lack of interaction, the collision of corporate cultures and others,
- a merger can occur at the most inconvenient moment, which in itself can increase the financial losses of the interested parties.
4. Marvel may also try to negotiate debt restructuring with current creditors that would help avoid bankruptcy without significantly changing the structure of the company.
Benefits
- restructuring without additional external assistance,
- the possibility of focusing on the development of the company, rather than selling a business or merger procedures.
Risks
- successful negotiations on new injections of funds with debt holders are unlikely, given the losses already incurred,
- overcoming resistance to other options,
- prevention of the sale of debt bonds by current holders, provoking a further decline in the value of the company.
After considering the advantages and risks of these four options, it seems most likely: the rejection of non-core assets (1) and merger with another company (3). Liquidation (2) and restructuring (4) are unlikely.
The sale of non-core assets would support its core business and implement an exit strategy from the current situation, which could have received the approval of all interested parties. By abandoning the side business, Marvel could focus on what she can do best - create popular characters and storylines, which in turn could be licensed in other companies. Nevertheless, the key problems of this scenario are: Marvel’s ability to correctly determine which parts of it are crucial, the sale of non-core assets at a fair price, the identification of their potential buyers and the growth of the publishing business in a falling market.
The merger scenario was very viable. Depending on the company, a merger with Marvel would provide fresh resources for the development of the company. Merging with companies like DC Comics and Disney would allow Marvel to continue to grow under their leadership. The key factors related to this option are identifying potential buyers, defining relations between the companies and validating the merger by Marvel shareholders.
The liquidation of the company was the most unlikely option due to the unique core asset of Marvel. While the comic market was in decline, some of the company's characters continued to enjoy immense popularity. In addition, the liquidation of companies during bankruptcy brings the least return to all interested parties, because of the sale below market value.
Debt restructuring was also unlikely, given the declining popularity of Marvel assets. Debt holders sought to reduce losses and were most likely in favor of the first or third option, as they provided Marvel with a chance to survive. Some would even prefer to completely eliminate Marvel than restructure debts.
The Marvel character set was vital to the existence of the Toy Biz business and the company's success depended on Marvel’s ability to develop and support meaningful characters. Given the key importance of the Marvel universe, Marvel’s bankruptcy could lead to serious problems for Toy Biz, so consider the main scenarios from their point of view:
1. Toy Biz could buy Marvel core assets. The main factors that determine the viability of this option include: determining the appropriate purchase price, assessing Marvel’s readiness to sell its core asset, and assessing the ability of Toy Biz to maintain and increase brand value.
Benefits
- the purchase of Marvel’s core assets was relatively cheap, since bankruptcy was inevitable,
- reducing the dependence of Toy Biz on third-party companies,
- expanding the Business of Biz Biz, by opening the sale of character licenses to third parties,
- full access to very popular characters,
- cost reduction
- control over the development and development of characters.
Risks
- the impossibility of convincing Marvel to sell its main asset,
- Possible overpayment for characters,
- decrease in market demand.
2. Toy Biz could merge with Marvel, given that Marvel already owns a large stake in the company. The merger of the two companies would provide both multiple benefits, including those listed in the previous version. Such an option would significantly reduce the financial difficulties of Marvel.
Benefits
- the purchase of Marvel, as a potential bankrupt, would cost a lot less than a round sum
- business expansion Toy Biz,
- the ability to influence the development of characters,
- asset synergy,
- growth of both companies
- more stable income due to business diversification.
Risks
- the difficulty of convincing Marvel to unite,
- overpayment for Marvel,
- decrease in market demand,
- the impossibility of materializing the expected synergy,
- Marvel's financial burden is shifted to Toy Biz.
3. According to this scenario, Toy Biz completely breaks off relations with Marvel and develops new areas of business based on new internal or external sources. The key factor relating to this option is to identify new sources that correspond to the new strategic directions of the company.
Benefits
- dependence of Toy Biz from Marvel is completely removed,
- increase the flexibility of the company,
- the possibility of developing more promising business areas,
- the concentration of the company's resources on the development of new characters and toys.
Risks
- the difficulty of identifying new sources of characters,
- the difficulty of developing your own perspective characters,
- unsuccessful new sources,
- loss of opportunity to get Marvel characters if the company survives.
Considering the risks and benefits, all three options were quite probable and realizable, nevertheless, dependence on the main asset of Marvel, lack of experience in developing characters and limited ability to identify new assets or strategic directions. Based on the options considered - the second would be most preferable.
Buying Marvel's core assets was a very tempting event, but Toy Biz's ability to competently dispose of the asset was in great doubt because the company had no experience in this area. Companies would have to urgently explore a new niche for themselves, and given how much time Marvel or DC Comics needed for this, this option gave an adventurous edge.
The option of new strategic directions is also viable, but rather complicated, since it required significant investments and high-quality planning.
From the point of view of Marvel debt holders, they had two options that suit everyone:
Both options imply high risks. When choosing an option, it was necessary to solve the following questions:
- Which option is better for the commitment holders?
- Is the company really so bad?
- Will Marvel develop and implement a restructuring plan?
- What will be the result of the liquidation of the company?
The key to understanding the choice of a scenario is highly dependent on the nature of shareholders' attitude to risk.
1. Assuming Marvel presented a viable restructuring plan, debt holders could continue to hold existing stakes in the hope of recovering Marvel, which in turn would have a beneficial effect on the company.
Benefits
- better relations with company employees,
- great future returns,
- reduction of current losses from the sale of shares during bankruptcy,
- refusal to liquidate Marvel assets (potential increase in the price of shares).
Risks
- significant losses in case of unsuccessful attempts to resuscitate the company,
- loss of opportunity to minimize losses.
2. Under this option, debt holders sell their assets. A very plausible option, given the current distress and foggy future of Marvel, especially since many investors in such cases are trying to fix their losses and move on to more productive tools.
Benefits
- minimization of further losses,
- obtaining the residual value of assets.
Risks
- the loss of the opportunity to earn on the Marvel revival,
- the liquidation of assets makes it impossible for a potential revival.
Both variants were equally viable, neither of which prevailed over the other. Each had clear advantages and disadvantages. The key factor in choosing an option, as already mentioned, is the risk profile of each particular debt holder.
Retention and further investment in Marvel is the most preferable option for debt holders who are willing to take risks and consider the Marvel revival to be a likely event. Providing Marvel with a second chance allowed investors to compensate for the investment, but in the same way deprived them of the opportunity to minimize losses.
The liquidation of current positions was a better option for those who were more cautious and considered the Marvel revival to be not real. Such investors could liquidate securities portfolios. However, under this option, the holders lost the ability to compensate for investments when the company's positions were restored.
Based on the above, there were two most likely scenarios. Marvel sells non-core businesses or merges with another company. An open question is who the merger would happen to. Toy Biz had only one acceptable option - to unite with the company, as they were inextricably linked. Also from the point of view of the holders of obligations, there were two options applicable depending on risk preferences.
In fact, the lenders were divided into two main camps: banks, in some way protected, and holders of unsecured bonds, which financed Ron Perelman when he was the general director of Marvel. The owners of the bonds merged, led by corporate raider Carl Icahn (Carl Icahn), who owned shares for $ 100 million from $ 70 million, invested funds, trying to get a controlling stake. Marvel's net worth estimate, in accordance with the liquidation plan, did not have the desires of two groups of creditors in the foreseeable future. As a result, they fought in arbitration. Meanwhile, Toy Biz CEO Ike Perlmutter (Ike Perlmutter) made a deal with banks to support the reorganization plan and the merger of Toy Biz and Marvel. After several rounds of legal battles, the arbitration court ultimately ruled in favor of Perlmutter and the companies were allowed to merge at Marvel Enterprises.
In the end, Marvel was able to overcome all the obstacles to merging with the company most closely associated with it, which in turn is also true for Toy Biz, the survival of which without Marvel was in question. From the point of view of banks of creditors, the merger increased the chances of survival of both companies. Holders of unsecured bonds were the losers, but by the same decision, the arbitral tribunal ruled that they could return the losses resulting from a lawsuit against Ron Perelman for corporate negligence and fraud. Here, the court was guided by the fact that bondholders understood the risk of buying bonds, and compensation should be made at the expense of the person who issued these securities. In the end, the bondholders lost the litigation because it was found that Ron Perelman did not violate any laws.
Banks won the most, receiving $ 232 million in cash, 13 million ordinary and 8 million preferred shares with an 8% fixed dividend, the right to an additional purchase of shares and a small compensation from Ron Perelman. Also among the winners can make Toy Biz, preserved from the inevitable capture of Karl Aikan and retained access to the Marvel universe. The owners of the shares received warrants for the purchase of shares for $ 12 million. The holders of debt bonds did not win anything. Karl Aykan received $ 3.5 million in legal fees and a portion of Marvel Enterprises preferred shares.
In general, a bankruptcy court decision turned out to be the most fair and reasonable settlement that could be achieved, since most of the stakeholders were less satisfied, the laws were not violated, and all the drama participants shared the positive and negative aspects of bankruptcy, which are the same for all kind of.
In the next part of the case, solutions will be described that allowed Marvel to rise to its feet and grow to a billionth sale. And it is also quite possible to describe a little the current position of the company and development prospects. See you.
UPD
Business case. Marvel's wonderful resurrection (part 1) .
Business case. Marvel's wonderful resurrection (part 3) .
PDF version .
So bankruptcy - as it were.
In 1996, Marvel reported a huge loss in the amount of $ 464 million. On October 8, 1996, Marvel announced a violation of the terms of its loan commitments due to a decrease in income. A third of the staff was fired. Then, on December 27, 1996, the publisher Marvel Comics filed for bankruptcy under the terms of Chapter 11 of the Bankruptcy Code. In accordance with this document, the company must pay all its bills and maintain normal repayment schedules and loan terms with all its suppliers and licensees.
Bankruptcy provided an opportunity for all major stakeholders to evaluate all possibilities of returning investment funds. In this part, we will define and consider possible scenarios for resolving the current situation for the three main stakeholders (besides them there were others):
- Marvel is a group management company.
- Toy Biz is a large license holder, largely dependent on the fate of Marvel.
- Lenders are investors of Marvel, including banks, bondholders and others.
Based on the consideration of different scenarios, we will try to evaluate the best option from the point of view of each participant from a strategic point of view and compare the options in order to assess who ultimately benefited from bankruptcy and who lost and whether the competing needs of various parties are reasonably satisfied.
')
Marvel Perspectives
Bankruptcy immediately alleviates the company's cash deficit, protects against creditors and some litigation. However, it has a negative impact on employees, customers and suppliers. Marvel needs a plan to regain the trust of interested parties. Approximate options:
- Liquidation of non-core assets and loss of forming parts.
- Sale of the entire company, including core assets.
- Consolidation with another company.
- Discussion of current financial conditions (debts).
1. By the time of bankruptcy, Marvel consisted of five main divisions performing the following functions:
- Publication and sale of comics and other children's publications.
- Consumer products, display advertising, promotion and licensing of Marvel characters.
- Marketing and sales of collectible cards and stickers.
- Design, marketing and distribution of toys.
- Production and distribution of adhesives and confectionery.
Marvel can lose business, production capacity and strategic values. Non-core assets not directly related to the development of the main asset of Marvel (comic characters) will be sold. Their sale will allow Marvel to straighten out the business of the main business (comics and licensing).
Benefits and risks
Benefits
- focus on core business,
- the possibility of licensing characters for other companies (that is, business outsourcing of current non-core units),
- creation of a compact organizational structure,
- The ability to avoid future problems on non-core assets.
Risks
- lack of suitable buyers for non-core units,
- sale of units at prices below market,
- an increase in the volatility of Marvel's total income, as a more compact enterprise,
- Sale of non-core assets will lead to a decrease in the comic book market as a whole.
2. Marvel can be fully sold. The main business segments of the company, being on a decline in sales, would have been auctioned off with a very steep discount to the potential market value of the company.
Thus, it is likely that participants in the bankruptcy procedure are interested in finding alternatives, given the brand value and the history of the Marvel franchise.
Benefits and risks
Benefits
- Zero probability of any future losses for all shareholders (despite the fact that the chances of reviving the company had very little potential),
- the preservation of individual parts of the company, albeit by sale.
Risks
- loss of status in the comic industry,
- loss of a unique asset, inexperienced buyers will not be able to continue the development of the Marvel universe,
- partial or total loss of funds by interested parties,
- loss of the ability to restore the company,
- overcoming resistance to deprivation of property.
3. Marvel can be absorbed by another company, a potential competitor, such as DC Comics, Time Warner or Disney. These companies have experience. Another option would be to merge with the licensee Marvel. For example, with a toy company or film studio. The third target category could be some other companies wishing to use the Marvel heritage to strengthen their own business.
Benefits and risks
Benefits
- financial resources and expertise to preserve the Marvel universe,
- huge benefits for target companies to acquire,
- rescue Marvel characters,
- acceptable financial reimbursement to interested parties.
Risks
- the impossibility of determining a “qualified” company for a merger,
- the continued decline in the value of Marvel characters,
- loss of control over the company,
- contradictions with the buyer, which can lead to financial instability, lack of interaction, the collision of corporate cultures and others,
- a merger can occur at the most inconvenient moment, which in itself can increase the financial losses of the interested parties.
4. Marvel may also try to negotiate debt restructuring with current creditors that would help avoid bankruptcy without significantly changing the structure of the company.
Benefits and risks
Benefits
- restructuring without additional external assistance,
- the possibility of focusing on the development of the company, rather than selling a business or merger procedures.
Risks
- successful negotiations on new injections of funds with debt holders are unlikely, given the losses already incurred,
- overcoming resistance to other options,
- prevention of the sale of debt bonds by current holders, provoking a further decline in the value of the company.
Discussion options Marvel
After considering the advantages and risks of these four options, it seems most likely: the rejection of non-core assets (1) and merger with another company (3). Liquidation (2) and restructuring (4) are unlikely.
The sale of non-core assets would support its core business and implement an exit strategy from the current situation, which could have received the approval of all interested parties. By abandoning the side business, Marvel could focus on what she can do best - create popular characters and storylines, which in turn could be licensed in other companies. Nevertheless, the key problems of this scenario are: Marvel’s ability to correctly determine which parts of it are crucial, the sale of non-core assets at a fair price, the identification of their potential buyers and the growth of the publishing business in a falling market.
The merger scenario was very viable. Depending on the company, a merger with Marvel would provide fresh resources for the development of the company. Merging with companies like DC Comics and Disney would allow Marvel to continue to grow under their leadership. The key factors related to this option are identifying potential buyers, defining relations between the companies and validating the merger by Marvel shareholders.
The liquidation of the company was the most unlikely option due to the unique core asset of Marvel. While the comic market was in decline, some of the company's characters continued to enjoy immense popularity. In addition, the liquidation of companies during bankruptcy brings the least return to all interested parties, because of the sale below market value.
Debt restructuring was also unlikely, given the declining popularity of Marvel assets. Debt holders sought to reduce losses and were most likely in favor of the first or third option, as they provided Marvel with a chance to survive. Some would even prefer to completely eliminate Marvel than restructure debts.
Perspectives Toy Biz
The Marvel character set was vital to the existence of the Toy Biz business and the company's success depended on Marvel’s ability to develop and support meaningful characters. Given the key importance of the Marvel universe, Marvel’s bankruptcy could lead to serious problems for Toy Biz, so consider the main scenarios from their point of view:
- Purchase rights to all Marvel characters.
- Full consolidation with Marvel.
- New strategic direction of business development.
1. Toy Biz could buy Marvel core assets. The main factors that determine the viability of this option include: determining the appropriate purchase price, assessing Marvel’s readiness to sell its core asset, and assessing the ability of Toy Biz to maintain and increase brand value.
Benefits and risks
Benefits
- the purchase of Marvel’s core assets was relatively cheap, since bankruptcy was inevitable,
- reducing the dependence of Toy Biz on third-party companies,
- expanding the Business of Biz Biz, by opening the sale of character licenses to third parties,
- full access to very popular characters,
- cost reduction
- control over the development and development of characters.
Risks
- the impossibility of convincing Marvel to sell its main asset,
- Possible overpayment for characters,
- decrease in market demand.
2. Toy Biz could merge with Marvel, given that Marvel already owns a large stake in the company. The merger of the two companies would provide both multiple benefits, including those listed in the previous version. Such an option would significantly reduce the financial difficulties of Marvel.
Benefits and risks
Benefits
- the purchase of Marvel, as a potential bankrupt, would cost a lot less than a round sum
- business expansion Toy Biz,
- the ability to influence the development of characters,
- asset synergy,
- growth of both companies
- more stable income due to business diversification.
Risks
- the difficulty of convincing Marvel to unite,
- overpayment for Marvel,
- decrease in market demand,
- the impossibility of materializing the expected synergy,
- Marvel's financial burden is shifted to Toy Biz.
3. According to this scenario, Toy Biz completely breaks off relations with Marvel and develops new areas of business based on new internal or external sources. The key factor relating to this option is to identify new sources that correspond to the new strategic directions of the company.
Benefits and risks
Benefits
- dependence of Toy Biz from Marvel is completely removed,
- increase the flexibility of the company,
- the possibility of developing more promising business areas,
- the concentration of the company's resources on the development of new characters and toys.
Risks
- the difficulty of identifying new sources of characters,
- the difficulty of developing your own perspective characters,
- unsuccessful new sources,
- loss of opportunity to get Marvel characters if the company survives.
Discussion options Toy Biz
Considering the risks and benefits, all three options were quite probable and realizable, nevertheless, dependence on the main asset of Marvel, lack of experience in developing characters and limited ability to identify new assets or strategic directions. Based on the options considered - the second would be most preferable.
Buying Marvel's core assets was a very tempting event, but Toy Biz's ability to competently dispose of the asset was in great doubt because the company had no experience in this area. Companies would have to urgently explore a new niche for themselves, and given how much time Marvel or DC Comics needed for this, this option gave an adventurous edge.
The option of new strategic directions is also viable, but rather complicated, since it required significant investments and high-quality planning.
Prospects for investors and debt holders. Investing in a sinking ship.
From the point of view of Marvel debt holders, they had two options that suit everyone:
- Continuing support and investing.
- Sale or liquidation.
Both options imply high risks. When choosing an option, it was necessary to solve the following questions:
- Which option is better for the commitment holders?
- Is the company really so bad?
- Will Marvel develop and implement a restructuring plan?
- What will be the result of the liquidation of the company?
The key to understanding the choice of a scenario is highly dependent on the nature of shareholders' attitude to risk.
1. Assuming Marvel presented a viable restructuring plan, debt holders could continue to hold existing stakes in the hope of recovering Marvel, which in turn would have a beneficial effect on the company.
Benefits and risks
Benefits
- better relations with company employees,
- great future returns,
- reduction of current losses from the sale of shares during bankruptcy,
- refusal to liquidate Marvel assets (potential increase in the price of shares).
Risks
- significant losses in case of unsuccessful attempts to resuscitate the company,
- loss of opportunity to minimize losses.
2. Under this option, debt holders sell their assets. A very plausible option, given the current distress and foggy future of Marvel, especially since many investors in such cases are trying to fix their losses and move on to more productive tools.
Benefits and risks
Benefits
- minimization of further losses,
- obtaining the residual value of assets.
Risks
- the loss of the opportunity to earn on the Marvel revival,
- the liquidation of assets makes it impossible for a potential revival.
Discussing options for debt holders
Both variants were equally viable, neither of which prevailed over the other. Each had clear advantages and disadvantages. The key factor in choosing an option, as already mentioned, is the risk profile of each particular debt holder.
Retention and further investment in Marvel is the most preferable option for debt holders who are willing to take risks and consider the Marvel revival to be a likely event. Providing Marvel with a second chance allowed investors to compensate for the investment, but in the same way deprived them of the opportunity to minimize losses.
The liquidation of current positions was a better option for those who were more cautious and considered the Marvel revival to be not real. Such investors could liquidate securities portfolios. However, under this option, the holders lost the ability to compensate for investments when the company's positions were restored.
How it was really. Winners and losers
Based on the above, there were two most likely scenarios. Marvel sells non-core businesses or merges with another company. An open question is who the merger would happen to. Toy Biz had only one acceptable option - to unite with the company, as they were inextricably linked. Also from the point of view of the holders of obligations, there were two options applicable depending on risk preferences.
In fact, the lenders were divided into two main camps: banks, in some way protected, and holders of unsecured bonds, which financed Ron Perelman when he was the general director of Marvel. The owners of the bonds merged, led by corporate raider Carl Icahn (Carl Icahn), who owned shares for $ 100 million from $ 70 million, invested funds, trying to get a controlling stake. Marvel's net worth estimate, in accordance with the liquidation plan, did not have the desires of two groups of creditors in the foreseeable future. As a result, they fought in arbitration. Meanwhile, Toy Biz CEO Ike Perlmutter (Ike Perlmutter) made a deal with banks to support the reorganization plan and the merger of Toy Biz and Marvel. After several rounds of legal battles, the arbitration court ultimately ruled in favor of Perlmutter and the companies were allowed to merge at Marvel Enterprises.
In the end, Marvel was able to overcome all the obstacles to merging with the company most closely associated with it, which in turn is also true for Toy Biz, the survival of which without Marvel was in question. From the point of view of banks of creditors, the merger increased the chances of survival of both companies. Holders of unsecured bonds were the losers, but by the same decision, the arbitral tribunal ruled that they could return the losses resulting from a lawsuit against Ron Perelman for corporate negligence and fraud. Here, the court was guided by the fact that bondholders understood the risk of buying bonds, and compensation should be made at the expense of the person who issued these securities. In the end, the bondholders lost the litigation because it was found that Ron Perelman did not violate any laws.
Banks won the most, receiving $ 232 million in cash, 13 million ordinary and 8 million preferred shares with an 8% fixed dividend, the right to an additional purchase of shares and a small compensation from Ron Perelman. Also among the winners can make Toy Biz, preserved from the inevitable capture of Karl Aikan and retained access to the Marvel universe. The owners of the shares received warrants for the purchase of shares for $ 12 million. The holders of debt bonds did not win anything. Karl Aykan received $ 3.5 million in legal fees and a portion of Marvel Enterprises preferred shares.
In general, a bankruptcy court decision turned out to be the most fair and reasonable settlement that could be achieved, since most of the stakeholders were less satisfied, the laws were not violated, and all the drama participants shared the positive and negative aspects of bankruptcy, which are the same for all kind of.
In the next part of the case, solutions will be described that allowed Marvel to rise to its feet and grow to a billionth sale. And it is also quite possible to describe a little the current position of the company and development prospects. See you.
UPD
Business case. Marvel's wonderful resurrection (part 1) .
Business case. Marvel's wonderful resurrection (part 3) .
PDF version .
Source: https://habr.com/ru/post/292056/
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