Posted in: Comics, Dynamite | Tagged: bankruptcy, diamond

Dynamite Gets Minor Victory Over Its $500,000 Claim Against Diamond

Dynamite Entertainment gets a minor victory in its fight over a $500,000 bill owed by Diamond Comic Distributors, Inc, the debtor in this bankruptcy action.

Published Thu, 25 Sep 2025 10:00:04 -0500

by Rich Johnston

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As part of Diamond Comics' ongoing Chapter 11 bankruptcy, comic book publisher Dynamite Entertainment has secured a court order for an expedited hearing on its motion to compel discovery from Diamond Comic Distributors, Inc., the debtor in this process. This is not to be confused with the Ad Populum/Sparkle Pop division, which now calls itself Diamond Comic Distributors II LLC. The move comes amid Dynamite's attempt to define certain monies owed by Diamond, the debtor, over half a million, as an administrative claim. And thus, more easily and quickly payable and granted priority over other claims in the bankruptcy process, as these debts by Diamond to Dynamite were made after bankruptcy protection had been launched. This would be out of a total debt owed by Diamond to Dynamite, or over a million dollars.

Court documents reveal Dynamite served Diamond with document requests and interrogatories on the 31st of July, seeking details on shipments, contracts, correspondence, and potential setoff rights related to the disputed amounts. Responses were due by the 27th of August, but none were provided. An email exchange between attorneys shows Dynamite's counsel, Justin P. Fasano, following up on the 12th of September, only to receive an apology for the delay and a promise of responses by the 17th of September, along with a request for Word versions of the requests. But Dynamite states that no responses had materialised, prompting Dynamite to claim that this means that Diamond has waived objections by failing to respond in a timely fashion, stating that "The failure to timely object to a request for production of documents without good cause constitutes a waiver of any objections to that interrogatory or request."

Dynamite argues the release of such information is crucial ahead of a 22nd of October hearing on its administrative expense claim, which prioritises post-bankruptcy debts under Chapter 11 rules. The publisher contends that Diamond's objection to the claim, filed under Docket No. 501, is "extremely vague," merely stating the amount is overstated and that "This essentially says nothing and Dynamite is still unaware how the Debtor will defend the Motion. Dynamite is entitled to know the Debtor's defenses prior to the October 22, 2025 hearing." Dynamite is seeking not only full responses within three days but also reimbursement for attorneys' fees.

Dynamite also filed a motion to expedite the hearing, and the bankruptcy court granted that request yesterday, scheduling a video conference hearing for tomorrow. The proposed order in the filings would require Diamond to respond within one day and pay Dynamite's costs.