Posted in: Comics, Current News | Tagged: Alliance, diamond

Alliance Entertainment Won't Lose Diamond Comics Without A Fight

Alliance Entertainment won't lose Diamond Comics at bankruptcy auction without a fight... it all kicks off on Monday

This morning, Bleeding Cool reported that the debtors in the Diamond Comic Distributors Chapter 11 bankruptcy case had stated that they preferred the auction joint bid by Universal Distribution and Ad Populus rather than the previous winning bid by Alliance Entertainment or AENT.

Bleeding Cool confirmed that the Universal/Ad Populus bid was just over $69 million, split between the two, with Universal to pay almost $50 million for Allia

nce Games and Diamond UK, cited as the profitable wings of the business, and Ad Populum to pay almost $20 million for Diamond Comic Distributors, Diamond Select Toys & Collectibles and the rest. While the Alliance Entertainment or AENT bid rejected by the debtors was $72 million, almost three million dollars higher than the Universal/Ad Populus bid, and they weren't interested in Diamond UK. Universal Distribution's stalking horse bid from earlier in the year was a mere $39 million. And Diamond received seven qualified bids.

But Alliance Entertainment is not dropping out without a fight. Today they have filed new paperwork with the court ahead of the bankruptcy hearing at 10 am tomorrow. By announcing the following new witnesses to the court hearing

• Bruce Ogilvie, Chairman, AENT,
• Paul Navid, Partner Province, LLC, Investment Bankers for AENT
• Geoffrey Richards, Senior Managing Director Raymond James & Associates, Investment Bankers for the Debtors
• Alec Haesler, Director Raymond James & Associates, Investment Bankers for the Debtors
• Robert Gorin, Co-Chief Restructuring Officer for the Debtors#

So AENT is bringing witnesses from the legal firm Raymond James & Associates tasked with carrying out the auction. AENT also "reserves the right to call any person listed or called as a witness by any other party, any person for purposes of impeachment; and any person for purposes of rebuttal.

Earlier this year, Diamond Comic Distributors, a stalwart distributor of comics to the direct market, declared Chapter 11 bankruptcy after a tumultuous half-decade. On the 24th of March, the bankruptcy auction process initially selected Alliance Entertainment as the successful bidder of the Diamond-associated companies Diamond Comic Distributors, Alliance Game Distributors, Collectible Grading Authority, and Diamond Select Toys & Collectibles, but excluding Diamond UK.

But legal paperwork filed yesterday states that after consultation, the debtors believe that the consortium reported by Bleeding Cool as the auction backup bidders, Canadian distributors Universal Distribution and Ad Populum should be the successful bidders for Diamond Comic Distributors. And a hearing is taking place tomorrow at 10 am before Judge David E. Rice at the United States Bankruptcy Court for the District of Maryland.

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