Marvel Looking To Sell Off Unit
WILMINGTON, Del. (AP) _ Marvel Entertainment Group Inc. has a buyer willing to pay up to $13 million for the confection business of its Fleer Corp. subsidiary.
The sale of an undisclosed unit worth $12 million to $13 million has been arranged, Collins Seitz, an attorney for Marvel’s court-appointed trustee told U.S. District Court Judge Roderick McKelvie during a hearing Friday.
After the hearing, Marvel’s chief financial officer, August Liguori, confirmed that the asset being sold is the confection business of Fleer Corp., one of several Marvel subsidiaries that filed for bankruptcy protection in December 1996. But Liguori declined to name the prospective buyer for the unit, which includes such products as Dubble Bubble Gum and Razzles.
McKelvie scheduled a May 26 auction should competing bids arise. Liguori said the proceeds will be used to satisfy a $90 million claim against Marvel for financing that allowed the company to keep operating after the bankruptcy claim was filed.
Seitz also told the judge that trustee John Gibbons would then ask the 3rd U.S. Circuit Court of Appeals to remove a stay Gibbons had asked for that is holding up the reorganization plan. However, there are other issues and rulings still to be resolved.