Marvel Case

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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’ life, but most importantly to its investors and the financial market. Here we discuss in detail about the reason Marvel file for bankruptcy, the evaluation of the restructuring plan, equity worth per share under restructuring plan, its influence on the…show more content…
It means that the relieved debt burden could be ultimately offset by the prudent acquisition. Marvel would be inevitable in crisis. Furthermore, the debt holders, debt of whom would be transformed into equity, would not be fully paid off. After the restructuring plan was announced, the stock price of Marvel plummeted. From what was shown in Exhibit 3, Marvel’s stock price continued to decline afterwards. Under the downward pressure of share price, the value of the collateral shares for the bonds are now much lower than it used to be at the time of the bonds being issued. In other words, the new shares could now only cover partially the face value of original bonds. For Carl Icahn, the largest unsecured debt holder who would have to invest in the highly discounted share once the restructuring plan is passed, whether or not its investment could be paid back would be doubtful. Though Bear Stearns, a company who prepared financial projections for Marvel’s acquisition of Toy Biz, predicted modest growth for Marvel and significant growth for Toy Biz, and that Marvel was valued more as a going concern, the argument of Bear Stearns is questionable and hard to be guaranteed. Therefore, as Carl Icahn, we would not vote for the proposed restructuring plan. Part 3 Evaluation

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