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Diamond Comics Gets Fourth DIP Financing Extension To Pay Publishers

Diamond Comic Distributors gets a fourth DIP financing extension approved to pay off publishers, some of them



Article Summary

  • Diamond Comics secures a fourth DIP loan extension to help pay off overdue debts to publishers and creditors.
  • The new agreement boosts funding to $9 million and extends the repayment deadline to June 28, 2025.
  • Court requires Diamond to provide updated financial projections and budgets as part of ongoing bankruptcy.
  • Ad Populum, Diamond's new owner, is restructuring operations and renegotiating key leases amid layoffs.

The United States Bankruptcy Court has approved the latest amendment to the Debtor-in-Possession (DIP) Credit Agreement between Diamond Comic Distributors, its debtors, and JPMorgan Chase Bank. This means that Diamond Comic Distributors can keep going under Chapter 11 bankruptcy protection, even though it was just bought by Ad Populum in a bankruptcy auction. And maybe some of the publishers who haven't been paid recent bills might actually get paid. Here's hoping.  According to a statement Diamond issued on this matter, the Bankruptcy Estate is responsible for invoicing related to all sales up to May 15, while new ownership is responsible for invoicing from May 16 and beyond.  We've reported how this has recently impacted the specific case of Dynamite, and it is certainly having an effect on other publishers as well.  Further, in its application to the court for this new amendment to the DIP agreement, Diamond still has obligations under the transition service agreements with Universal and Sparkle Pop.

The fourth amendment, approved two days ago, increases the amount of money available to almost nine million dollars. The date that this has to be paid off is now the 28th of June 2025, rather than yesterday, unless they pay it back early. These amendments are intended to provide Diamond with financial flexibility for the final stages of their bankruptcy proceedings. The court did, however, state that they have to send an updated 13-week budget and cash flow projections to both the DIP Lender and the Committee by June 13th or a later agreed-upon date. We know how good they have been with getting paperwork in on time.

In other news, Diamond is seeking to reject their ongoing lease of their headquarters and warehouse in Hunt Valley, Maryland, as part of its Chapter 11 bankruptcy dealings, effective yesterday. The original lease was entered into in 2012, between Diamond and the landlord, SFV York Road, and now, the new Diamond owners, Ad Populum, have negotiated their own deal with the landlord. And as a result, they planned to surrender the premises and keys yesterday to… themselves? Yes, it's weird. Welcome to bankruptcy proceedings.

Will Diamond's Bankruptcy Process Go After Comic Shop Debt?
Diamond logo

You can use these DiamondAd PopulumPenguin Random House and bankruptcy tags to keep up with the latest on Bleeding Cool. Here's a timeline if you want to catch up…

 

 


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Rich JohnstonAbout Rich Johnston

Founder of Bleeding Cool. The longest-serving digital news reporter in the world, since 1992. Author of The Flying Friar, Holed Up, The Avengefuls, Doctor Who: Room With A Deja Vu, The Many Murders Of Miss Cranbourne, Chase Variant. Lives in South-West London, works from The Union Club on Greek Street, shops at Gosh, Piranha and FP. Father of two daughters. Political cartoonist.
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