Publishers have been filing objections to Diamond Comic Distributor‘s motion that would allow them to sell, liquidate, dispose of, inventory it currently still has. Many publishers have already been vocal about the motion and many have responded to our inquiries with “no comment” because it’s an ongoing legal matter. TwoMorrows Publishing, Magma Comix, and Graphitti Designs, Abstract Studio, NBM, William M. Gaines, Agent, Inc., Humanoids, a joint filing by 13 publishers, GAMA, the Ad Hoc Committee of Consignors, Cryptozoic Entertainment, and Image Comics have each filed objections to the motion. Diamond’s bank lender JPMorgan Chase filed a “limited objection” and “reservation of rights.” That’s about 1/3 of the 128 publishers mentioned as impacted in Diamond’s initial motion.

In many of those objections, it has been pointed out that who actually “owns” the consignment stock hasn’t been determined by the court. The Ad Hoc Committee, a group of creditors that has formed to represent the interests of those who provided goods to the debtor, has filed a motion to stay the decision as to what to do with the stock.

The Ad Hoc Committee, due to many of the reasons brought up in the objections has asked the court to:

1. the Debtors have obtained a declaratory judgment from this Court confirming that the proposed Stock to be sold is, in fact, property of the Debtors’ estates; which declaratory judgment can only be achieved through
   • (i) the Debtors’ commencement and service of a complaint on each of the respective consignors who delivered the Stock proposed to be sold;
   • (ii) opportunity for discovery by all parties to the declaratory judgment action; and
   • (iii) dispositive motions and/or trial on the causes of action identified in the Debtors’ prospective complaint; along with any subsequent appeals or expiration of deadline to appeal any such final order; and
2. the Debtors have amended the Motion to clarify which Stock is proposed to be sold.

The issue has been delayed with objections extended partially due to so many objections as well as San Diego Comic-Con. We expect a lot of movement on the topic next week.