IN RE MARVEL ENTERTAINMENT GROUP, INC.

Civ.A. No. 97-638-RRM.

222 B.R. 243 (1998)

In re MARVEL ENTERTAINMENT GROUP, INC.; The Asher Candy Company; Fleer Corp.; Frank H. Fleer Corp.; Heroes World Distribution, Inc.; Malibu Comics Entertainment, Inc.; Marvel Characters, Inc.; Marvel Direct Marketing, Inc.; and Skybox International, Inc., Debtors.

United States District Court, D. Delaware.

June 25, 1998.


Attorney(s) appearing for the Case

Collins J. Seitz, Karen C. Bifferato, Connolly, Bove, Lodge & Hutz, Wilmington, DE; Michael R. Griffinger, Frank J. Vecchione, Karen A. Giannelli, Gibbons, Del Deo, Dolan, Griffinger & Vecchione, Newark, NJ, for John J. Gibbons, Chapter 11 Trustee.

Steven Kortanek, Phillips Goldman & Spence, Wilmington, DE; Edward S. Weisfelner, Bari J. Mattes, Berlack, Israels & Liberman, L.L.P., New York City, for Standby Purchasers.

Thomas L. Ambro, Mark D. Collins, Daniel J. DeFranceschi, Margaret H. Morgan, Richards, Layton & Finger, Wilmington, DE; Chaim J. Fortgang, Douglas S. Liebhafsky, Amy R. Wolf, Douglas K. Mayer, David C. Bryan, Wachtell, Lipton, Rosen & Katz, New York City, for Secured Lenders.

Jeffrey C. Wisler, Williams, Hershman & Wisler, P.A., Wilmington, DE; Richard S. Toder, Andrew D. Gottfried, Zalkin, Rodin & Goodman, L.L.P., New York City, for Chase Manhattan Bank, as DIP Agent.

David B. Stratton, David M. Fournier, Pepper, Hamilton & Scheetz, L.L.P., Wilmington, DE; Lawrence C. Ashby, Ashby & Geddes, Wilmington, DE; Lawrence Mittman, Douglas L. Furth, David Fleischer, Madlyn Gleich Primoff, Battle Fowler, L.L.P., New York City, for Toy Biz, Inc.

Teresa Currier, Adam G. Landis, Duane, Morris & Heckscher, L.L.P., Wilmington, DE; Gary M. Schildhorn, Steven D. Usdin, Gary D. Bressler, Leon R. Barson, Adelman, Lavine Gold and Levin, Philadelphia, PA, for Official Committee of Equity Security Holders.

Norman L. Pernick, Saul, Ewing, Remick & Saul, Wilmington, DE, for Marvel Holdings.

Joanne Wills, David S. Eagle, Klehr, Harrison, Harvey Branzburg & Ellers, L.L.P., Wilmington, DE; James E. Spiotto, Ann Acker, Franklin H. Top, III, Timothy T. Finley, Chapman & Cutler, Chicago, IL, for LaSalle National Bank as Indenture Trustee.

Michael B. Joseph, Theodore J. Tacconelli, Ferry & Joseph, Wilmington, DE; Tonny K. Ho, Francis J. Menton, Jr., Elvin Esteves, Catherine E. Larocca, Willkie Farr & Gallagher, New York City, for Official Committee of Unsecured Creditors.

Patricia A. Staiano, Frederick J. Baker, John D. McLaughlin, Jr., Office of U.S. Trustee, Philadelphia, PA, United States Trustee.


OPINION

McKELVIE, District Judge.

This is a bankruptcy case. On December 27, 1996, Marvel Entertainment Group, Inc. ("Marvel") and certain of its subsidiaries (collectively "the Debtors") filed voluntary petitions for relief pursuant to Chapter 11 of the United States Bankruptcy Code ("the Code") in the United States Bankruptcy Court for the District of Delaware. This court has withdrawn the reference to the bankruptcy court and entered an order authorizing...

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