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Terms Of Image Comics' Legal Settlement With Diamond Comics, Revealed

The terms of Image Comics' legal settlement with Diamond Comic Distributors over liquidation plans has been revealed

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Last week, Bleeding Cool broke the news that Image Comics had settled with Diamond Comic Distributors, Inc, the debtor in the Diamond chapter 11 bankruptcy case, over plans for Diamond to liquidate consigned inventory of comics. owned by many publishers, to benefit the banks that had funded the bankruptcy. With none of the money going to the publishers. Yesterday, the court granted the Ad Hoc Committee of comic book publishers Motion to stay the liquidation, which means that Diamond will now have to initiate a lawsuit called an adversary proceeding against all 135 consignment vendors in order to proceed with obtaining the right to liquidate the consigned inventory.

But Image has already settled this matter with the debtor, and now we know some of the details. They read that "Image has provided the Debtors with a list designating Consigned Inventory to be returned to Image pursuant to this Agreement, and a back-up list designating alternative inventory to be returned to Image if any of the inventory on the Primary List is unavailable at the time of pick up" to match an agreed retail value. And they have to agree on a day, a time, and a process to pick it all up. Because, yes, Image Comics has to come and get it themselves. "The Debtors shall provide Image access to the Warehouse and identify the location of the Return Inventory. Image shall then pick up and remove the Return Inventory at its expense."

But aside from this agreed-upon list of comics and books that Image Comics can claim back, "Image relinquishes any and all rights to the Remaining Inventory, including any right to the proceeds of the sale of the Remaining Inventory." So Diamond Debtors can liquidate everything not on that list. And also that "Image assigns to the Debtors all of its rights to any proceeds from Sparkle Pop's unauthorised sales of Consigned Inventory." So any of the Image Comics titles that Ad Populum/Sparkle Pop has already sold without authorisation are now a debt from Ad Populum to the Debtors.  The parties have also agreed not to sue each other over related matters.

Which books Image wanted to reclaim, and which they have given up to the Diamond Debtors to be rid of this burden, has yet to be released. Nor has it been determined how much Ad Populum/Sparkle Pop, the Diamond purchasers, have sold of the Image consigned stock. The second day of the Diamond hearing in the Baltimore bankruptcy courts has begun. Image Comics has declined to comment on this matter. You can use these Diamond tabs to keep up with the latest on Bleeding Cool. Here's a timeline if you want to catch up…

Has Image Settled With Diamond Over Plans To Liquidate All The Comics?
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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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