In January 2025, Diamond Comic Distributors filed chapter 11 leading to a dragged out fight on multiple fronts. One of those has been between Diamond and publishers over consignment stock Diamond has in its possession as well as some of that stock having been sold by Sparkle Pop as part of “new” Diamond. Ahead of a new hearing on the subject taking place December 8, Diamond as well as their creditor JPMorgan Chase Bank have filed objections, opposition, as well there have been witness and exhibit lists submitted by the parties involved.

The hearing involves a motion by the Consignment Group for Diamond to assume or reject contracts with its members. The Consignment Group consists of Aspen Comics, Black Mask Studios, DSTLRY, Dark Horse Comics, Dynamic Forces, Heavy Metal International, Magnetic Press, Massive Publishing, Oni-Lion Forge Publishing Group, Panini UK, Punk Bot Comic Books (Alien Books), The Penn State University (Graphic Mundi), Titan Publishing Group, and Vault Storyworks (Vault Comics).

In their objection Diamond really updates their previous one from August 15 as there have been developments over the months since the Consignment Group originally filed their motion.

Sparkle Pop is no longer selling consigned goods and the money gained by Sparkle Pop from the sale of goods by Sparkle Pop has been put into an account the court controls.

The next point they raise is that Diamond has filed adversary complaints against individual publishers after a previous court ruling concerning the sale of the consigned goods. Diamond’s concern is that this motion by the Consignment Group would get around those proceedings. If the court is in favor of the Consignment Group and compels Diamond to assume or reject contracts, Diamond states it’d have no choice but to reject the contracts, which would result in a termination of the contracts, and then the publishers would be able to get back their inventory. That would undermine Diamond’s complaints against each publisher which concerns the consigned inventory.

Diamond also has issues with the amount the publishers claim they’re owed, which is $675,069.95. The majority of that, $509,114.21 is owed to Dynamic Forces/Dynamite Entertainment which were satisfied in a previous deal between the them and Diamond. That leaves $165,955.74 which Diamond calls “modest in the scope of these chapter 11 cases.”

In news, Diamond claims it has paid members of the Consignment Group post-petition in excess of $1.8 million including the deal with Dynamic Forces to settle their matters. Those sales were post chapter 11 filing and from consignment sales, which Diamond can do. Diamond states what’s left are the “administrative claims” against Diamond and that Diamond is working towards paying those claims in full.

And finally, which is what we as reporters have been wondering about, the issue over the consigned goods has gone to mediation and currently being worked through to be resolved.

JPMorgan Chase Bank’s opposition is that there is currently negotiations going on regarding the disputes over the consigned inventory. Theirs is mostly a protective basis that allows them to supplement its legal arguments. JPMorgan reiterates Diamond’s argument that there’s other adversary proceedings between Diamond and the publishers regarding the inventory and this undermines all of that. They also point out that money has been deposited in an escrow account which will cover administrative claims when they’re settled. So, with things being handled in other ways, this needs to be rejected by the court.

Various lists of witnesses and exhibits have also been released.

The Consignment Group has filed their witness list for the hearing:

The Ad Hoc Committee of Consigners released their exhibit list:

JPMorgan Chase Bank’s witness list: