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Diamond Comic Distributors to seek 120 day extension on Chapter 11 bankruptcy proceedings, until September 11th
Posted in: Comics, Current News | Tagged: bankruptcy, diamond
The Diamond Comic Distributors Sale Will Be Finalised Tomorrow
The Diamond Comic Distributors sale will be finalised, tomorrow, in Baltimore. Unless, of course, something happens...
Article Summary
- Diamond Comic Distributors’ sale to Ad Populum and Alliance Gaming to Universal closes tomorrow in Baltimore.
- Alliance Entertainment’s top bid was dropped, sparking lawsuits and a twist in the Diamond bankruptcy saga.
- The fate of Diamond UK, Previewsworld, Free Comic Book Day, and more remains uncertain after the sale.
- Years of lawsuits, bankruptcy, and high-stakes auctions set the stage for a pivotal moment in comics distribution.
Millions have been spent on lawyers. Millions are still being sued over. And one comic book podcast seemed to turn the entire thing on its head. And some see Nick Landau and Vivian Cheung of Titan Comics and Forbidden Planet as the most influential people of all. But tomorrow, the sale of Diamond Comic Distributors to Ad Populum, and Alliance Gaming to Universal Distributors, will be finalised, and the company will begin to exit Chapter 11 bankruptcy and stay far, far from Chapter 7 bankruptcy. That is, of course, if nothing goes wrong.
Bleeding Cool understands that we are not to expect any mid-May surprise from the original high bidder, Alliance Entertainment, or AENT. Though they are still suing Diamond Comic Distributors over the auction process and allegations of fraud.
What the future brings, we do not know. Diamond UK is expected to be sold separately to Universal Distribution. The future of Diamond mainstays like the Diamond Previews catalogue, Free Comic Book Day, Halloween ComicFest, Comic Book Store Locator, the Previewsworld website and database, and so much more is still unknown. As well as, if there is more stability and they manage to pay back some of the debtors, will publishers return to New Diamond?
If you want to catch up, here is the journey we have been on…
You can use these Diamond and bankruptcy tags to keep up with the latest on Bleeding Cool. And a quick reminder of how we got here…
- 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 breakfasts 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 filings, Diamond released details for every comic store on account.
- And here we are now…
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