And the drama around Diamond‘s Chapter 11 continues. This morning we received a new motion by Alliance Entertainment, the original winning bidder, that objects to the sale of Diamond’s assets to the back-up bidders of Universal Distribution and Ad Populum.

For those keeping track, originally, Alliance Entertainment won the bid for Diamond during the bankruptcy process. Diamond then said it wanted to go with the “second best” joint bid by Universal Distribution and Ad Populum, then Alliance threatened to sue, and Alliance won the final approval. Then… in a shocking twist Alliance said it was not going through with the bid. We found out that was because Diamond had withheld key information from Alliance during the process and was suing Diamond and its representatives. After Alliance’s pull of its bid, Diamond released a statement that they had other partners and we speculated it was the back-up bidders. Yesterday, Diamond filed a court motion to go with Universal and Ad Populum as well as to speed up the process with a hearing suggested for today. Part of that hearing also has to do with Diamond’s credit with JPMorgan and dates involving that.

In their motion, Alliance says the motions filed by Diamond are “further collusion” to sell their assets to their preferred buyers rather than maximize their value with the highest bid. They also have issues with the hearing on this twist by Diamond being so soon, especially since it was many days ago Diamond said they had new partners and the deal with Universal and Ad Populum isn’t changed much. Alliance is teasing that Diamond waited to file the motion for the new bid and the hearing to rush the deal through with minimal time for response. Alliance is still figuring out if the back-up sale would or would not provide more value to the Diamond.

You can read the full motion below.