Dan, YOU'RE NUTS! Read this, will you. Our common stock is worthless
and anyone who buys will have to spend more money to buy the warrants.
ANYONE WHO BUYS THIS STOCK NOW BELONGS IN THE SAME MENTAL INSTITUTION AS YOU.
Thursday March 12, 2:03 pm Eastern Time
Toy Biz reaches pact with Marvel creditors
NEW YORK, March 12 (Reuters) - Toy Biz Inc Thursday said it reached agreement with unsecured creditors of Marvel Entertainment Group Inc(MRV - news) to support a Marvel reorganization plan put forward by Toy Biz and senior secured creditors.
Marvel affiliate Toy Biz has been an active participant in sometimes heated talks regarding how the comic book publisher would reorganize. Marvel has been under chapter 11 bankruptcy protection for more than a year.
''Holders of allowed unsecured claims will receive, on a pro rata basis, a cash distribution of 15 percent of the amount of the allowed unsecured claims plus $2 million, up to a maximum of $8 million'' under the plan filed with the court, a release said.
Also, ''unsecured creditors will receive up to 1.75 million warrants to purchase common stock in the combined Toy Biz/Marvel,'' the statement added.
The warrants would have four-year terms and have a $17.25 exercise price, the company said.
And ''holders of allowed unsecured claims will be entitled to receive distributions from any recovery on certain future litigation,'' the release said.
*******************************************************************
DO YOU EVER READ ANYTHING?????????????????
Under the Toy Biz plan shares of Toy Biz common stock will convert into an equal number of shares of common stock in the combined company, giving Toy Biz stockholders (other than Marvel) an ownership interest of approximately 41% in the combined company. Marvel's senior secured creditors and debtor in possession lenders will receive approximately $230 million in cash and Marvel's senior secured creditors will also receive common and convertible preferred stock, giving them a 40% ownership interest in the combined company. The Toy Biz Plan also provides for new investors to purchase $90 million in convertible preferred stock, giving them an ownership interest of approximately 19% in the combined company.
Under the Toy Biz Plan, prepetition unsecured creditors will in the aggregate receive up to a maximum of $4 million in cash, up to a maximum of $4 million in notes, up to a maximum of 1 million plan warrants, and between 5% to 10% from litigation recoveries against third parties.
---------------------------------------------------------------
Marvel stockholders will receive subscription rights excercisable prior to the closing of the combination to purchase common stock at a price of $9.625 per share, up to a maximum of 4 million such rights. Exercise of the warrants and subscription rights will dilute the ownership interests of the other stockholders in the combined company. ---------------------------------------------------------------- |
