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Court appoints trustee to run Marvel instead of Carl Icahn-appointed board

December 12, 1997

WILMINGTON, Del. (AP) _ A federal judge Friday ordered that a trustee be appointed to run Marvel Entertainment Group Inc. instead of the board of directors installed by investor Carl Icahn.

The appointment of a trustee had been sought by a consortium of banks led by Chase Manhattan, which loaned the company $712 million. The trustee is to be appointed by early next week.

``We will continue the operation of the company, make sure everyone gets paid, and await the arrival of the trustee,″ said Marvel chief financial officer August Liguori. Icahn declined to comment as he left U.S. District Judge Roderick McKelvie’s courtroom.

Icahn won control of Marvel after leading a bondholder effort to take over the company while it tried to reorganize in bankruptcy court. Financier Ronald Perelman took the company into bankruptcy a year ago.

The bank consortium and Icahn’s forces have been unable to reach an agreement on a reorganization plan that would bring the company out of bankruptcy court despite months of rancorous negotiations.

As a result of the uncertainty and a year of costly legal battles, Marvel is close to insolvency, Chase attorneys have claimed.

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