TCR_Public/970225.MBX




InterNet Bankruptcy Library - News for February 25, 1997






Bankruptcy News For February 25, 1997



  1. Marvel Bondholders Win Motion to Lift Stay in Bankruptcy Court




Marvel Bondholders Win Motion to Lift Stay in Bankruptcy Court


NEW YORK, NY --Feb. 25, 1997--Members of the Official Committee of Bondholders of Marvel Holdings, Inc., Marvel
(Parent) Holdings, Inc. and Marvel III Holdings, Inc. ("Bondholders' Committee") announced today that the Honorable Helen
Balick of the Delaware Bankruptcy Court has granted their motion to lift the automatic stay in the Marvel Holdings
bankruptcy. Granting relief from the automatic stay permits the bondholders to vote and foreclose upon approximately 80% of
the equity shares of Marvel Entertainment Group, Inc. (NYSE: MRV) pledged to secure the bondholders' claims.


"This is a tremendous victory for the bondholders and the public equity holders," said David M. Friedman of Kasowitz,
Benson, Torres & Friedman LLP, attorney for the Bondholders' Committee. "We are very grateful for the Judge Balick's fair,
even-handed approach to these cases. We will continue to push forward until we can reach an equitable resolution that is
acceptable to all parties, not just to Ron Perelman."


The bondholders, which own $894 million in bonds secured against approximately 80% of the equity in Marvel Entertainment,
have vehemently opposed the reorganization plan proposed by Marvel Entertainment, which would effectively pay the
bondholders' 4 1/2 cents on the dollar. Marvel Entertainment's plan calls for Ronald Perelman, who controls Marvel
Entertainment, to purchase 410 million newly issued Marvel Entertainment shares at $0.85 per share, diluting the bondholders'
stake from 80% to 15% and the public stockholders' stake from approximately 20% to 4%. Members of the Bondholders'
Committee have offered to underwrite a rights offering on the same terms as the reorganization plan proposed by Marvel
Entertainment, but which permits the bondholders and the public equity holders to participate in the purchase of the new
equity.


The Official Committee of Bondholders of Marvel Holdings, Inc., Marvel (Parent) Holdings, Inc. and Marvel III Holdings,
Inc. was formed on January 9, 1997 in Wilmington, Delaware. The members of the Bondholders' Committee include High
River Limited Partnership (Chairman), Westgate International, L.P. (Vice-Chairman), United Equities Commodities Company,
Jeff Schultz Investments, Whereco, Inc. and M3, LLC. The Bondholders' Committee has retained Jefferies & Co. Inc. as their
financial advisors.


CONTACT: George Sard/Paul Caminiti/Tracy Williams Sard Verbinnen & Co 212/687-8080