Although Perlmutter believed that a Coleco bankruptcy was probable, he also believed that the value of the Coleco's assets should be sufficient to cover the full $85 million in value that he had purchased. In July 1988, Coleco filed for Chapter 11 bankruptcy. The bondholders, suspicious over Perlmutter's close relationship with Coleco's management, sued Perlmutter alleging fraudulent conveyance over the barter advertising credits (which made up a very significant item on Coleco's balance sheet). After extensive negotiation, a settlement was reached whereby Coleco would be sold to Hasbro Corporation for $85 million and Perlmutter would accept $64 million for his now $90 million claim (principal plus interest) in exchange for the withdrawal of the lawsuit. In 1994, Victor Kiam sold controlling interest of Remington Products to Isaac Perlmutter. Perlmutter became Vice President of Remington. Kiam and Perlmutter sold Remington to Vestar Capital Partners in 1996. Isaac Perlmutter was a member of the board of directors of Marvel Comics beginning in April 1993 and was chairman of the board until March 1995. Isaac Perlmutter also was the co-owner, with Avi Arad, of Toy Biz (later Marvel Toys), having purchased its predecessor company from Charan Industries in January 1990. Toy Biz, Inc. was reorganized in the Marvel deal with Perlmutter continuing to own the original Toy Biz, Inc., which was renamed Zib, Inc. Zib held its foreign sales affiliate, Toy Biz International Ltd., a Hong Kong corporation and Perlmutter's share of the new Toy Biz, Inc. When the Marvel Group went bankrupt in 1996, protracted legal battles over control of the company followed between Perlmutter, Arad, Carl Icahn, and Ronald Perelman. By 1997, Perlmutter and Arad had established control over the company, pushing out Icahn and Perelman. ToyBiz and Marvel were merged into Marvel Enterprises to bring it out of bankruptcy in June 1998 with ToyBiz becoming a division of the new company. On November 30, 2001, Perlmutter became vice chairman of Marvel. He became the chief executive officer of Marvel Comics on January 1, 2005. He remained CEO of Marvel Entertainment, even after the acquisition of Marvel by The Walt Disney Company on December 31, 2009. Although Perlmutter received $800 million in cash and $590 million in Disney stock after the acquisition, he did not want a seat on Disney's board of directors.