Marvel Enterprises has offered to exchange all of its outstanding convertible preferred shares, which require 8% annual dividend payments, for common shares at a 1.39/1 ratio.  According to its announcements, shareholders of 55% of its preferred shares have already agreed to the swap.  SEC filings indicate that preferred shareholders Isaac Perlmutter (Marvel's largest shareholder) and Whippoorwill Associates are planning to accept the swap.  If all of the preferred shareholders agree to the exchange, it would save Marvel around $4 million a quarter of interest payments, substantially increasing its profitability.

Marvel's profit picture has already improved dramatically in recent weeks.  It recently raised its forecasts for third quarter and full year profitability by $8 million, 'primarily' due to its MMORPG deal with Vivendi Universal (see 'Marvel Licenses MMORPG').  And those improvements were on top of Marvel's huge success with the Spider-Man movie and other movie licenses (see 'Blockbuster Bucks Buoy Bottom Line').  Marvel's turnaround from just over a year ago, when it was almost out of cash and had no bank financing, is nothing short of amazing. 

Marvel has also just announced another movie deal with Universal, which is producing its Ang Lee Hulk movie, for Submariner and Prime.  The Submariner deal is of particular note because of the involvement of Road to Perdition scribe David Self as writer.