Diamond releases its Witness and Exhibit List for Wednesday’s Hearing Regarding Sparkle Pop Selling Consigned Goods
There’s a lot of balls in the air when it comes to Diamond‘s chapter 11 process. Wednesday, September 10 is the next hearing, this one having to do with Sparkle Pop having sold consignment goods when they weren’t supposed to.
The short version, Diamond still has a lot of inventory in its possession that are on consignment. Diamond wants to sell the inventory to raise money so it can pay back its lender, JPMorgan Chase Bank. But, publishers don’t want them to and have filed been fighting to stop their motion. During that, it was revealed that Sparkle Pop had sold a bunch of the goods on consignment when they shouldn’t have.
Diamond filed a motion at the end of August to force Sparkle Pop to stop selling the inventory and also asking for some sort of damages. Sparkle Pop has said they have stopped selling the inventory and have the money set aside and waiting to be told what to do with it by the court and blamed Diamond for the issues. Then, there’s publishers who have some issues with Diamond’s motion against Sparkle Pop.
So, that’s what’s being covered on September 10.
For witnesses, Diamond has called Robert Gorin who is the co-Chief Restructuring Officer and Ramy Aly who is the Senior Director, Getzler Henrich & Associates, LC. Both will have knowledge of the agreements of the sale of Diamond’s assets to Sparkle Pop. Those assets did not include consigned goods.
As far as the exhibits, there’s various agreements, email that is likely Diamond telling Sparkle Pop to stop selling the inventory, and most importantly, the consignment inventory list. If it’s released, it’ll be the first time we’ve gotten idea as to what inventory Diamond still has access to.
The hearing will take place September 10 and 10am ET.
Check out the full list filed below:
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