Toy Biz, Inc. to Purchase Marvel?

The big losers under this plan would be the current Marvel stockholders, led by financier Carl Icahn, and Marvel's unsecured creditors. The Toy Biz plan gives absolutely nothing to the existing stockholders except the right to purchase (at $9 5/8 per share) up to 8% of the combined companies. The unsecured creditors would receive even less, as they only have an option to purchase 4% of the shares in the new company at $15 per share.

Another group that seemingly is impacted negatively by this proposed deal are holders of existing licenses for Marvel characters. In exchange for its contribution into the combined company, Toy Biz is asking to receive all of Marvel Entertainment free of all pre-bankruptcy debts and obligations. This raises the question of whether all existing licensing agreements would be voided. If this were the case, the merged entity could reap a bonanza by issuing new licenses. The film rights, alone, could bring millions.
 
Yet another potential area of conflict is in regard to creator royalties. Royalties owed for projects created prior to the bankruptcy have continued to be paid during the bankruptcy proceedings. This has been an important source of  income for creators whose past works for Marvel have been turned into trade paperbacks, cards, toys, or film. At the present time, it is questionable whether these creators would receive any further payments. Particularly hard hit by any discontinuance of royalties payments would be Chris Claremont, John Byrne, Frank Miller, and the Jack Kirby estate.

A hearing is set before U.S. Bankruptcy Judge Roderick McKelvie on Friday, Dec. 12th.