marvel comics turnaround - Turnaround Management Association

Marvel Comics Turnaround Team 2
Debt Holders Option A: Continue To Invest/Hold in Marvel
Assuming that Marvel presented a viable restructuring plan, the debt holders could hold
their existing stakes in hopes that Marvel turned around successfully. Marvel did have several
options, from divesting non-core assets and/or merging with another company. Such moves may
have proved viable in helping Marvel turnaround. However, the debt holders already faced a
massive loss today along with a very real possibility that they would not fully recover their losses
in the future; it would have been their risk profile that determined whether they wanted to continue
to hold in Marvel.
Benefits and Risks of Debt Holders Option A – (Continue to Invest/Hold)
Benefits Risks
� Capitalize on Marvel’s turnaround � Increase in losses because Marvel may
(assuming it is successful)
never successfully turnaround
� Provides Marvel’s team with faith and
backing
� Lose option to minimize losses
� Creates greater returns in the future
� Reduces current losses if sold stakes during
Marvel’s bankruptcy
� Avoids liquidation of Marvel’s assets
(potentially sold significantly under value)
Debt Holders Option B: Sell/Liquidate Holdings
Under this option, the debt holders would have sold their stake or collected immediately on
the remaining assets. This was a very plausible option given the fact that things did not look
favorable for Marvel, especially if the bondholders had low-risk tolerances and wanted to
minimize any further losses.
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