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Posted in: Comics, Current News | Tagged: AENT, diamond
Courts Confirm AENT Bought Diamond Comics, Lawsuit Must Be Withdrawn
Bankruptcy Court confirms that Alliance Entertainment, or AENT, has bought Diamond Comics at auction, but their lawsuit must be withdrawn
Article Summary
- Alliance Entertainment has acquired Diamond Comics after winning the bankruptcy auction.
- The court ruled in favor of AENT, dismissing rival bids and confirming the purchase.
- AENT must withdraw its lawsuit against Diamond Comics within two business days.
- The sale is set to close by April 25, ending Diamond Comics' Chapter 11 phase.
The Baltimore Chapter 11 Bankruptcy Court has issued an order approving the asset purchase agreement between Diamond Comic Distributors and associated companies, and the high bidder in the bankruptcy auction, Alliance Entertainment. It does appear to be for everything, Diamond, Diamond UK, Diamond Select, CGA, Alliance Gaming, the lot.
In January, Diamond Comic Distributors, the biggest distributor of comic books to comic stores in the world, declared Chapter 11 bankruptcy. This enabled it to keep operating while it tried to find a more permanent solution to its debts, including a bankruptcy auction. Despite a challenge from the debtors regarding a smaller rival joint bid from Canadian comics distributor Universal Distribution and pop culture company Ad Populum, the court stated that Alliance Entertainment had "submitted the highest or otherwise best bid for the Assets; and adequate and sufficient notice of the Bidding Procedures, the APA, and all transactions contemplated thereunder and in this Order were given pursuant to and consistent with the Bidding Procedures Order; and it appearing that the relief requested in the Motion is in the best interests of the Debtors, their estates, creditors, and other parties in interest".
But the court also states that "Within two (2) business days of the entry of this Order, Purchaser shall cause to be withdrawn, with prejudice, (i) its Verified Complaint (captioned Alliance Entertainment, LLC v. Diamond Comic Distributors, Inc., Comic Holdings, Inc., Comic Exporters, Inc. and Diamond Select Toys & Collectibles, LLC) and (ii) its Motion for Preliminary Injunction With Temporary Restraining Order". This was the lawsuit that Alliance Entertainment launched when their successful auction bid was then rejected by the debtors, only for the courts to step in, and make their decision in Alliance Entertainment's favour.
The sale has been given a deadline to close by the 25th of April, pending final court formalities, marking the end of the thirteen-week Chapter 11 bankruptcy period.
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