Posted in: Comics, Current News | Tagged: Ad Populum, diamond

Diamond Tells Publishers About Outstanding Invoices & Future Payments

Diamond Comic Distributors and Ad Populum tell publishers about their outstanding invoices and future payments.

Diamond Comic Distributors has issued the following letter to comic book publishers and other vendors owed money as part of the Chapter 11 bankruptcy case, and purchase by Ad Populum, addressing current vendor concerns about recently-due payments that hadn't arrived as expected. The letter reads as follows;

"As we navigate the transition in ownership, we wanted to address questions we've received regarding outstanding invoices and future payment expectations.

Bankruptcy Estate Responsible for Invoicing Related to All Sales Dated May 15 or Earlier
"Invoices dated May 15 and earlier fall under the responsibility of the bankruptcy estate. These obligations were incurred during the Chapter 11 proceedings and pertain to consignment inventory held in our warehouse. We understand the estate is reviewing these outstanding amounts; however, no payment timeline has been provided to us at this time.

New Ownership Responsible for Invoicing Related to All Sales Activity May 16 Onward
"These obligations are fully separate from the bankruptcy estate and are actively being processed and paid under normal operating procedures. Our goal is to rebuild trust through action and consistency moving forward.

The Difference Between the Bankruptcy Estate and the New Organization
"We understand that the distinction between the bankruptcy estate and the new organization may be confusing. To clarify: the bankruptcy estate is a separate legal entity responsible for settling obligations incurred prior to the May 15 sale.

"Diamond, now operating under the ownership of Ad Populum, is a new entity and the new organization, responsible for all obligations from May 16 onward. Our focus is on moving forward with a clean slate and restoring stability for our partners. We are committed to maintaining strong, ongoing relationships with our vendor partners. If you have questions about specific invoices or need help determining which payments fall under which period, please contact your AP contact. Thank you for your patience as we work through this transition."

So basically, anything owed on or before the 15th of May, ask the bankruptcy people, anything afterwards, that's on Ad Populum. They aren't responsible for any previous debts. And that's the magic of bankruptcy law. You can use these Diamond, Ad Populum, Penguin Random House and bankruptcy tags to keep up with the latest on Bleeding Cool. Here's a timeline if you want to catch up…

• On the announcement of Chapter 11 on the 14th of January, Diamond started a 13-week bankruptcy process run by financial firm Raymond James, got financing to operate, and announced an auction for its assets.
• Those assets included Diamond Comic Distribution, Alliance Gaming Distribution, Diamond Select Toys, CGA and Diamond UK
• Universal Distribution was named the Stalking Horse bidder for Alliance Games and Diamond UK, which required a purchase commitment of thirty-nine million dollars, but with certain discounts and privileges for taking that position.
• The auction took place, and it went late. There was food and breakfast billed for.
• And Alliance Entertainment, or AENT, was named the top bidder for the assets of $72,245,000, though not for Diamond UK. This was widely announced, including by Diamond themselves.
• Then we learned that a joint bid by Universal Distribution and Ad Populum came second and was named the back-up bid, with a bid of $69,130,000. With Universal getting Alliance and Diamond UK, and Ad Populum getting Diamond Comics, Diamond Select Toys and everything else. Basic Fun was third with fifty million.
• A 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 was intended to ensure the legality of the bid and the process.
• But instead, over that weekend, the debtors declared that they had chosen the back-up bid from Universal and Ad Populum instead of AENT, despite AENT having bid more. No reason was given.
• AENT filed a lawsuit regarding this decision.
• It took the bankruptcy court to reverse that decision and state that AENT, with the higher bid, had won, though they would have to withdraw their lawsuit.
• AENT has terminated their winning bid and purchase.
• Universal Distribution and Ad Populum were back in the running
• Diamond declared "business as usual" but the courts threatened Chapter 7 over late paperwork.
• AENT sued Diamond, claiming fraud
• Diamond says it's all in hand and went back to court, wanting to be owned by Universal and Ad Populum.
• Sale of Diamond to Universal and Ad Populum was approved by the courts.
• Though Ad Populum paid more than we thought.
• Podcast blamed/credited with the current state of affairs
• Diamond tells Skyrush to stop claiming they won CGA.
• As part of court filings, Diamond released details for every comic store on account.
• We have some finality.
• Ad Populum and Universal Distribution officially acquire Diamond and related assets.
• The layoffs have begun.
• And continue.
• Diamond Select Toys has closed
• Diamond try and reassure retailers over ComicSuite
• Courts withdraw Chapter 7 bankruptcy threat
• We look at the future of Diamond Previews again
• PRH pulls out of Diamond entirely
• Well, not entirely, the UK can stay.
• Hermes Press says Diamond doesn't want to distribute their comics anymore… or anyone's.
• But Diamond pushes back on that, as they publish a new Previews.
• And they assure comic book stores that everything is going to be fine. Honest.

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