The Debtor also manufactures and sells products using images and trademarks licensed by Marvel Comics. Marvel has also attempted to terminate its license agreement for failure to pay royalties; however, this purported termination occurred post-petition and the Trustee does not believe that this agreement has been validly terminated. Nevertheless, relationships between the Debtor and its primary licensors are in a difficult state largely due to adverse publicity arising from the arrests of the Debtor’s principals in May and failure to pay royalties.
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