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Posted in: Comics, Current News | Tagged: AENT, diamond
The Day After That Diamond Comics Bankruptcy Court Hearing
The day after that Diamond Comics Distributors bankrutpcy court hearing... what's going on right now? And why?
Article Summary
- Diamond Comic Distributors faces Chapter 11 bankruptcy post-auction hearing for legality approval.
- Alliance Entertainment's bid was rejected, causing a shift to Universal and Ad Populum's joint offer.
- Debt concerns favor Universal's plan for a smoother transition in comics distribution.
- Alliance sues Diamond over auction change; next hearing is set for May 28 via virtual session.
Yesterday, saw the Chapter 11 Bankruptcy of Diamond Comic Distributors get its post-auction court hearing with the Honorable Judge Rice in Courtroom 9-D at the United States Bankruptcy Court for the District of Maryland at 10 am. It was intended to ensure the legality of the bid and the process. But the events of the past few days made that faw more awkward. The winning bidder in the auction, music/DVD/merch distributor Alliance Entertainment, was then rejected by the debtors of Diamond in favour of a smaller combined bid from Canadian comics distributor Universal Entertainment and pop culture manufacturer and licensor Ad Populum, which would split the assets of Diamond Comic Distributors between them.
I understand that some debtors may have favoured the Universal Distribution/Ad Populum joint bid because Universal's business plan is closest to Diamond's and might ensure a smooth transition of comics distribution to the direct market, which might be in the future interest of the debtors. Alliance Entertainment has a very different business plan, as expressed in a now-famous podcast, and may change the type of product made available through them. But that did not seem to be a factor in the auction process, and now Alliance Entertainment is suing over the post-auction change.
The court case did not conclude yesterday. Today it will continue with closing remarks made by both sides before being handed off to Judge Rice to make a decision, though the timeline for that is not set and could just take… as long as it takes.
The first legal hearing of Alliance Entertainment's complaint against Diamond Comic Distributors will be held on the 28th of May. The lawsuit against Diamond Comic Distributors will have a virtual hearing at 10 am on that day. That is, of course, if all this can't be settled before then.
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