Toy Biz Ends Plan With Marvel Bondholders

Toy Biz Inc. terminated an agreement to join a bondholder-led plan to reorganize Marvel Entertainment Group Inc. by combining the troubled comic book publisher with Toy Biz. The New York-based toy maker said it ended the proposal by mutual agreement with the bondholder committee, which represents Marvel Holdings investors, whose bonds are backed by Marvel Entertainment stock. However, bondholders, led by financier Carl Icahn, expressed surprise at the breakup of the plan, which was announced only a week ago. Toy Biz and Marvel are controlled by financier Ronald Perelman, who earlier proposed combining the two companies himself. Toy Biz switched to the bondholders’ side after a bankruptcy judge ruled that the bondholders could foreclose on Marvel stock used to back Marvel Holdings bonds. That action has been stayed as the two sides continue to fight for control of the publisher of comic books such as Spider-Man and the Incredible Hulk.