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

Diamond Comics Replies To Chapter 7 Bankruptcy Over Late Paperwork

Diamond Comic Distributors replies to Chapter 7 Bankruptcy filing by the courts over Diamond's late paperwork

Yesterday, Bleeding Cool reported on filed paperwork by the Baltimore bankruptcy courts to turn Diamond Comic Distributors' Chapter 11 bankruptcy proceedings trying to rescue the company, to Chapter 7 bankruptcy, liquidating the company's assets and closing it down. The hearing is set for a month's time, and the reasons cited are that Diamond Comic Distributors has not filed their monthly reports for three months, which is necessary for Chapter 11 bankruptcy proceedings.

Diamond has now issued the following statement, saying "You may have read or heard that the United States Trustee's office recently filed a request to convert Diamond's bankruptcy cases. This request was made due to Diamond's unfortunate, but unavoidable, delays in filing certain reporting information with the Court."

Unavoidably not returning three monthly reports, for January, February and March? How unavoidable could this be, and might Diamond have raised the issue with the courts first if there was a good explanation? Diamond continues, "Diamond is in the process of finalizing the reporting information and will do so over the next few days. Once this has happened, we fully expect that the United States Trustee will withdraw its request."

Well, yes, if Diamond does indeed file three late monthly reports, with a fourth due very soon, they may well do. It does appear that they could have seen this coming. Diamond concludes "We greatly regret any concerns these circumstances may have caused." Very reminiscent of the continual "Diamond regrest the error" that comic book retailers have been very used to over the decades.

It may also be noted that Emily Boticas, Vice President of Publisher Relations and Marketing at Diamond Book Distributors, who has been at Diamond for 18 years and who issued the last Diamond statement after AENT withdrew from buying Diamond, on the same day amended her LinkedIn profile to be "available for work". And added a Freelance Consultant string to her bow, for "Publishing consulting that includes; sales, marketing, and marketplace guidance with a focus on graphic novels and genre fiction".

Oh yes, and as of this morning AENT is now suing Diamond too, over claims for fraud and deception, over the Wizard Of The Coasts contract. It never rains but it pours…

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