[Chapter 651: Not for Long]
"Ron, I'm a professional manager, not a capital player," Avi Arad pointed to the outdated office supplies in the conference room. "Look at what you've done over the years. You've just mindlessly squeezed the remaining value out of Marvel. Many people have left in the past few years, the company has no vitality, and it's saddled with massive debts. If this continues, Marvel is going to die. I'm just trying to save this company. Isn't that right?"
Ron Perelman showed some embarrassment on his face, but he quickly snapped back, "But you shouldn't betray me. If you had any objections, you could've discussed them with me."
Hearing Ron Perelman say this, Avi Arad nearly laughed out loud. "Ron, do you really not remember how many times I practically begged you to 'discuss' things?"
Not sure if he was hurt or embarrassed, Ron Perelman felt a rush of blood to his head and nearly stammered as he emphasized once again, "You... don't forget, I am the owner of this company."
"Not for long," Avi Arad suddenly lost interest in talking to Ron Perelman and coldly dropped the line, walking out of the conference room.
...
More than half an hour later, Jeffrey Katzenberg, Avi Arad, Ron Perelman, and their respective lawyers gathered in another meeting room at Marvel.
Seemingly unaware of how Ron Perelman had rallied his spirits after collecting his emotions, Katzenberg opened a thick stack of documents he had pieced together the previous night, getting straight to the point. "Ron, you have two choices now. First, settle privately. MacAndrews & Forbes Holdings would pay a sum to buy out all Marvel's circulating shares at the current stock price, and then implement a 100% debt-to-equity swap, handing Marvel over to us. Personally, I think this is the best way to solve the current situation."
Hearing Ron Perelman's cold snort, Katzenberg remained unfazed and continued in a cold, formulaic tone. "Then there is the second option: we will apply to the SEC to investigate MacAndrews & Forbes Holdings' encroachment on Marvel's debt financing. Although such an investigation and the subsequent lawsuit would take a long time, no matter how long it drags on, in any case where the evidence is conclusive, you will still have to return all the encroached debt financing to Marvel, and you will face hefty fines from the SEC. I assure you, without $1 billion, don't even think about settling this lawsuit. Spend that $1 billion, and you will be close to bankruptcy."
A middle-aged man sitting next to Ron Perelman spoke up, "Mr. Katzenberg, can I take this as you are trying to intimidate my client?"
Katzenberg glanced at Ron Perelman's lawyer and replied with a smirk, "You should know, I'm in the film business. So don't use lines common in movies in such settings; it'll just make you look unprofessional."
The middle-aged man, obviously having the thick skin characteristic of lawyers, didn't mind Katzenberg's sarcasm and insisted, "Mr. Katzenberg, you didn't answer my question."
Katzenberg shrugged. "I'm not intimidating your client; I'm merely stating a basic fact and the determination of Firefly Group."
Ron Perelman stopped his private lawyer from saying anything more and said to Katzenberg, "Jeffrey, I'm not choosing either of those options. Don't forget, Marvel's bankruptcy protection period is one month. As long as I can come up with a reasonable solution within a month, Marvel is still mine, and nobody can take it away."
"That's right, it's one month," Katzenberg said disdainfully. "But you really can't come up with any method to bring Marvel back to life. Because the current Marvel is utterly a shell. Aside from the toy division, which can barely operate, Marvel films? Just a shell. Marvel television? A shell. The music department? A shell. Even the core, the comic book division, is no different from a shell now that all seven lead writers responsible for major hits like X-Men and Fantastic Four left two years ago. Mr. Perelman, tell me, how do you plan to bring Marvel back to life?"
Ron Perelman shouted back at Katzenberg without hesitation, "Don't think I don't know; the Firefly Group doesn't care about any of that. What you really want is just the superhero rights under Marvel. I'm telling you, you absolutely won't succeed. I would rather sell Marvel for a dollar to any third party than give it to Firefly."
Katzenberg, who had a notoriously short temper, raised his voice as well. "But you currently don't have the authority to sell Marvel for a dollar to any third party because a federal court wouldn't allow you to make such a move that would harm the interests of creditors. Even if you want to sell, you can only sell to Firefly."
"Don't even think about it. I've always been the one to take things from others. Nobody can take what's mine."
"Do you think it's still the '80s? Go take a look downtown. Drexel Burnham is long gone -- it's simply not there anymore!"
"..."
"..."
The already unfriendly meeting quickly escalated into a heated argument. Just as it looked like both sides might resort to violence, the onlookers, including Avi Arad, snapped back to reality and quickly separated Katzenberg and Ron Perelman.
After wreaking havoc in the office, Ron Perelman finally calmed down, leaving the Marvel headquarters with his lawyer and assistant without a word.
...
In Los Angeles, Eric Williams learned about the outbreak of conflict from Avi Arad's worried call. However, he wasn't too concerned. If he wanted to take over Marvel with a gentle touch, Eric could've sent Frank Wells to handle the situation, but that would only give Ron Perelman an inch. Katzenberg's strong and volatile personality was just the right match to keep Ron Perelman's greed in check.
...
After the rocky first negotiation, Ron Perelman didn't continue to engage with Firefly but immediately flew to Los Angeles, attempting to hand off the burden of Marvel to several major film companies in Hollywood. However, as the focus was all on Disney's animation division, nobody in Hollywood paid any attention to Ron Perelman. Even Michael Eisner, who realized he couldn't count on Panasonic's support to purchase the animation division, had no intention of taking action, as he sadly understood the Japanese wouldn't support Universal due to the conflict between Marvel and Firefly.
Subsequently, Ron Perelman refused to give up and tried to probe various companies interested in the entertainment industry. However, most companies with weaker strength were hesitant to provoke the capital forces represented by the country's two wealthiest individuals. Likewise, the stronger companies recognized that resolving Marvel's predicament would require investing hundreds of millions of dollars. Yet even if they seized Marvel, developing Marvel's film rights still relied on Hollywood's backing. And as Hollywood's biggest player, Firefly would certainly not allow these outsiders, who had taken their "prey," to have an easy time; in the end, it would just be not worth the trouble.
In desperation, Ron Perelman even started to reconsider the long-term bonds he held with Firefly.
But ultimately, nothing came of it. Not to mention that MacAndrews & Forbes Holdings' bonds were worth only $400 million, hardly enough to cover Marvel's losses, but also realizing Ron Perelman's recent troubles, investment firms interested in taking over the bonds were offering lower and lower prices. The highest bid was still a 10% discount, leading to a loss of $40 million in just a few months. Ron Perelman found it equally difficult to accept.
Another week passed, and it seemed Firefly had no urgency. However, Ron Perelman found himself at a dead end.
If he continued to stalemate and let the month-long bankruptcy protection period pass without coming up with any feasible corporate restructuring measures, Marvel would face compulsory liquidation.
On the morning of August 21, as soon as Avi Arad sat down in his office, he received a call from Ron Perelman. The hoarse voice on the other end struggled to maintain the last bit of dominance. "I don't want to see Jeffrey Katzenberg again. I want Eric Williams to meet with me personally."
*****
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