Today was a big day when it comes to Diamond’s Chapter 11 process as a hearing was held to decide on numerous motions. Being decided discussed are:

1. The sale of Diamond UK;
2. Diamond’s motion for the sale or other disposition of consigned inventory;
3. The Ad Hoc Committee of Consignors’ motion to stay Diamond’s motion concerning the consigned goods;
4. A motion for Diamond to assume or reject executory contracts with members of the Ad Hoc Committee of Consignors.

Out of the four, only one motion had a decision and the motion to sell Diamond UK was approved. It was pretty straight forward and there’s little controversy concerning it.

Evidentiary Hearing Held: re: 638 Motion to Sell Free and Clear of Liens and Notice of Motion IS GRANTED. Order to be prepared by Movant.(related document(s) 638 Motion to Sell Free and Clear of Liens and Notice of Motion, 716 Objection) (Scott, Cherita)

That leaves the next three… and the judge wants to hear more concerning them. In what is a good sign for publishers, especially the ones that are part of the Ad Hoc Committee of Consignors, the judge ruled that motion “granted.” So, there’s a temporary hold on Diamond’s plan so more can be argued for or against it.

In short, the judge wants to hear what the group has to say. There’s no ruling immediately outright in anyone’s favor and that’s not a bad thing. Diamond can’t sell the goods until there’s a decision on their motion for consigned goods but publishers aren’t getting their stock back either. There’s more to be argued.

Also done was evidence being admitted into the hearing, again, not a bad thing, as a lot of it are contracts between the publishers and Diamond.

So, overall, not the fireworks folks thought would happen and a lot of jockeying for what comes next and preparing the real debate to come. The next hearing is on August 19 and a lot of objections and responses are all up… to be continued!