ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, December 28, 1996 TAG: 9612300089
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
MARVEL COMICS, once a stock-market superhero, now struggles in the clutches of takeover artists.
Spider-Man and Captain America are a powerful duo, but even they couldn't muster enough strength to save parent Marvel Entertainment Group from the clutches of bankruptcy court.
The nation's largest comic book purveyor, also the No.1 producer of trading cards, filed for Chapter 11 protection from creditors Friday. The underlying trouble is that collectors who bought with abandon in the late 1980s and early '90s have lost their appetite for comics and cards.
Further complicating the plot, which has more twists than a Spider-Man serial, is a web of intrigue pitting Marvel owner Ronald Perelman against bondholder Carl Icahn, both renowned takeover artists.
Marvel was once a stock-market superhero that made big money for investors. Adjusted for stock splits, the price climbed 16-fold past $34 about 21/2 years after it was sold to the public in 1991.
The stock closed at $2.371/2 Thursday, down 121/2 cents. Trading of Marvel shares was halted Friday on the New York Stock Exchange after the bankruptcy news.
``It's been pretty disappointing,'' said Alexander Paris Jr., senior investment analyst at Barrington Research Associates Inc. in Chicago. ``The Marvel brand has a lot of intangible value. It's going to survive one way or the other.''
So far, though, Perelman, who owns about 81 percent of Marvel through his Andrews Group and other companies, has been doing everything in his power to keep the company. Touching off the bankruptcy filing was the unwillingness of creditors, including Icahn, to accept a Perelman restructuring plan.
Under that plan, Perelman would have spent $350million for about 80 percent of new Marvel shares. Perelman then would have merged Marvel with another company, Toy Biz Inc., which has enough cash flow and assets to shore up Marvel's finances.
Icahn rejected Perelman's plan, saying it would give Perelman control of the company for a fraction of its value. Icahn suggested instead a $350million takeover of the company by himself and other bondholders.
Now the U.S. bankruptcy court in Delaware, where Marvel is incorporated, will have to sort it out.
``We would have preferred to recapitalize Marvel without having to seek the aid of the court, but the actions and positions taken by the bondholders prevented that approach,'' said Scott Sassa, chairman and chief executive of Marvel.
Icahn called the bankruptcy court filing ``unconscionable,'' adding: ``It is patently clear that Ron Perelman has adopted this course to realize a windfall profit for himself at the expense of those to whom he owes a fiduciary responsibility.''
In its filing, Marvel Entertainment, which is based in New York, listed assets of $229.6million and liabilities of $693.2million.
Marvel titles like Spider-Man, Captain America, X-Men and the Fantastic Four haven't enjoyed the success they once did because of the cooling collectors' market for comics. New competitors cropped up during the boom years through 1993, many started by successful artists leaving companies such as Marvel.
Marvel also has been hurt by a decline in the market for baseball, football and other sports cards after acquiring the makers of Fleer and SkyBox trading cards a few years ago. Sports labor troubles didn't help the popularity of player cards.
LENGTH: Medium: 72 lines ILLUSTRATION: PHOTO: AP. X-Men comic books, produced by Marvel, awaitby CNBshelving Friday at St. Marks Comics Store in New York. color.