Diamond Objects to Dynamic Forces’ Motion for Administrative Expense
At the end of May, Dynamic Forces motioned for an administrative expense of over $500,000 from Diamond. Since the Chapter 11 filing by Diamond in January 2025, Dynamite has delivered $509,114.21 worth of goods it hasn’t been paid for. Dynamite/Dynamic asked to be paid for those goods sold as well as attorneys’ fees and interest, as well as late fees.
Diamond has now responded disputing the claim amount. In their motion they say the amount is “overstated” and “fails to account for certain of the Debtors’ setoff rights.” It further states that Diamond is in the process of figuring out what that actual amount is and will update things when it’s settled.
It also objects to the attorneys’ fees and interest saying that Dynamite’s reliance on a previous case decision is flawed and doesn’t support Dynamite’s argument. There’s a technical argument made by Diamond that the decision in the case Dynamite mentioned deals with “section 365(d)(5)” while Dynamite’s actual claim is under “section 503(b)(1)(A)” of Bankruptcy Code.
Finally, they say the administrative expense is not warranted immediately. In short, Diamond says that Dynamite hasn’t proven hardship that if they’re not paid immediately. And that Dynamite stated it provided goods to Diamond but not “harm or prejudice” that causes the need for immediate payment.
Read the full motion below:
