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Diamond Comic Distributors Bankruptcy Case Update
In a recent legal development, the judge presiding over the bankruptcy proceedings of Diamond Comic Distributors has seemingly favored Alliance Entertainment in its contest for ownership against Universal Distribution and Ad Populum. This ruling stemmed from a filing made on April 10, which shed light on the ongoing disputes within the case.
Initially, Diamond had agreed to sell its assets to Alliance. However, the company’s owners decided to halt that agreement abruptly, opting instead for a lower bid from Universal and Ad Populum. This unexpected shift led to Alliance pursuing legal action, culminating in a two-day court hearing earlier this week aimed at examining the legitimacy of Diamond’s reversal.
The filing from April 10 highlighted several points discussed during the hearing. It stated, “The Court indicated that it was prepared to enter an order approving the sale of substantially all of the Debtors’ assets to Alliance Entertainment, LLC (the “Sale”), upon the Debtors’ submission of a final form of order and revised asset purchase agreement consistent with statements made on the record at the Sale Hearing.” This suggests that Alliance increased its original bid from $72.2 million to $85.4 million, significantly surpassing the $69.1 million proposal from Universal and Ad Populum.
Although the filing does not definitively declare Alliance as the victor in this bidding war, the language utilized indicates strong court support for their higher offer. The order stipulates a deadline of April 25 for any challenges to be lodged, which could potentially allow for last-minute developments in this case. As of Friday morning, no party has confirmed that Alliance has secured final approval for the purchase, leaving the outcome in a state of uncertainty.
Source
www.publishersweekly.com