The official order from the court concerning the Ad Hoc Committee of Consignors‘ motion to stay Diamond’s motion for consignment has been released and with it, more detail on exactly what that means. You can read the original motion from early August here.

The motion comes after a hearing that was held on August 18 and the “evidence and arguments” submitted during it.

They court granted the Ad Hoc Committee’s motion which means:

1. Diamond’s motion for the “Sale or Other Disposition of Consigned Inventory” is stayed;
2. That stay applies to any discovery related to that Sale Motion and any hearings previously scheduled;
3. The stay to the Sale Motion remains in plae unless Diamond:
   • Commences an “adversary proceeding against each and every consignor that sold any goods contemplated to be sold by the Debtors in connection with the Sale Motion and obtain a final judgment in any such adversary proceeding finding that the proposed property to be sold in connection with the Sale Motion is property of the Debtors’ estates”;
   • Diamond and the publishers come to an agreement regarding the sale of any property which then becomes an order that needs to be approved.

A “stay” doesn’t mean the court has rejected a motion, it’s a temporary halt. So, this is really about sorting out other issues before other decisions are made.

A new hearing is set for September 30 that will dive into the motion that would compel Diamond to accept or reject contracts and any related relief which needs to be decided before any further decisions on inventory can be made.