TCR_Public/970307.MBX




InterNet Bankruptcy Library - News for March 7, 1997






Bankruptcy News For March 7, 1997



  1. Interscience Computer Corp. files for protection

  2. Marvel Bondholders Working With Company On Consensual Alternative Reorganization Plan

  3. Marvel Receives Bondholders' Proposed Financing Plan; Andrews Group Withdraws Its Plan




Interscience Computer Corp. files for protection


AGOURA HILLS, Calif.--March 7, 1997--Interscience Computer Corp. (NASDAQ NMS:INTR) announced it had filed on
March 6 for protection under Chapter 11 of the Federal Bankruptcy Code.


Frank J. LaChapelle, chief executive officer stated that the filing was to enable the company to reorganize its operations and
improve its cash flow. The company had been under cash pressure due to four acquisitions in the past 12 months.


In addition, this will facilitate the company's resolving several pending lawsuits and emerge from bankruptcy without these suits
clouding the company's operations.


CONTACT: Interscience Computer Corp., Agoura Hills Frank J. LaChapelle, 818/707-2000




Marvel Bondholders Working With Company On Consensual Alternative Reorganization Plan


NEW YORK, NY --March 7, 1997-- Bondholders To Guarantee $365 Million Rights Offering 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 they are working with Marvel Entertainment Group, Inc. (NYSE: MRV) to
finalize a consensual alternative reorganization plan. The original reorganization plan proposed by Marvel Entertainment was
withdrawn today.


The alternative plan includes a rights offering on a pro rata basis to all bondholders and non-insider Marvel stockholders.
Bondholder Committee Chairman High River Limited Partnership or another company controlled by Carl Icahn, as well as
Vice-Chairman Westgate International, L.P., and Committee member United Equities Commodities Company will guarantee
the $365 million rights offering. The alternative plan is subject to certain conditions, including that members of the Bondholders'
Committee guaranteeing the rights offering are satisfied with the results of their due diligence investigation.


In conjunction with the execution of the alternative plan, pursuant to which a $25 million deposit will be placed in escrow by
the guarantors, the Boards of Directors of Marvel and the Marvel Holding Companies will resign and be replaced by
designees of the bondholders, subject to Bankruptcy Court approval.


Pursuant to the alternative plan, $300 million of the proceeds of the rights offering will be used first to retire the indebtedness
outstanding under Marvel Entertainment's post-petition credit facility, with the balance used to pay down existing pre-petition
bank debt. $65 million of the $365 million rights offering, and any additional capital raised, will be retained by the reorganized
Marvel Entertainment for working capital.


"We are extremely pleased that we're now on the road to a truly consensual plan that will benefit all of Marvel's
constituencies," said David M. Friedman of Kasowitz, Benson, Torres & Friedman LLP, attorney for the Bondholders'
Committee. "The bondholders believe that Marvel's business has great potential with the proper capital structure and
management team. We believe a joint effort among the bondholders, the public equity holders and the Company will improve
the performance of this valuable franchise going forward."


The bondholders, which own $894 million in bonds secured against approximately 80% of the equity in Marvel Entertainment,
had opposed the original reorganization plan proposed by Marvel Entertainment.


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




Marvel Receives Bondholders' Proposed Financing Plan; Andrews Group Withdraws Its Plan


NEW YORK, NY - March 7, 1997 - Marvel Entertainment Group, Inc. (NYSE: MRV) announced it has received a
proposal for a $365 million infusion from the Marvel Holding companies Bondholders' Committee as part of a new Plan of
Reorganization that could enable Marvel to emerge from its Chapter 11 bankruptcy proceeding. Marvel has authorized
management to work with the bondholders to conduct their due diligence and develop definitive documentation. The
Bondholders' Committee proposal does not involve Toy Biz, Inc. (NYSE: TBZ) becoming a wholly owned subsidiary of
Marvel.


Marvel also announced that it was advised that Andrews Group has withdrawn its offer to purchase stock in a reorganized
Marvel.


The bondholders propose to complete their due diligence by March 21, 1997 and enter into a definitive agreement. Under
general terms of their proposal, the $365 million would be funded by owners of Marvel equity, including the bondholders,
through a rights offering, which would be backstopped by entities controlled by Carl Icahn, who is Chairman of the
Bondholders' Committee, and at least two other members of the committee. No interruptions are expected in Marvel's
operations.


"Our goal is to revitalize the Company and create value for our shareholders, and the faster we can implement a Plan of
Reorganization, the better for Marvel, its business partners and its employees," said Scott Sassa, Chairman and CEO of
Marvel. "This proposal keeps that process moving forward. It is the first, complete plan proposed by the bondholders. It
needs to be seriously examined, that needs to happen quickly, and that's why we agreed to work with them. With last week's
ruling by the Bankruptcy Court allowing the bondholders access to the common equity of Marvel that is owned by Andrews, it
became obvious that timely confirmation of the Andrews plan was unlikely, if not impossible."


SOURCE Marvel Entertainment Group, Inc.  /CONTACT: Gary Fishman, Investor Relations of Marvel Entertainment Group,
212-685-6890/