Diamond’s Chapter 7 Gets Testy with Questions of Secret Payment Arrangements

Diamond’s Chapter 7 Trustee Morgan W. Fisher‘s application to employ Stearns, Weaver, Miller, Weissler, Alhadeff, & Sitterson, P.A. as bankruptcy counsel (don’t they already have some?) should have been rather simple. But, things feel like they’re getting testy in a response to that proposed order by Goodman Games.

Goodman Games is a tabletop game publisher best known for Dungeon Crawl Classics and was founded in 2001.

In their filing on February 26, Goodman Games states it has no problem with the Trustee retaining “qualified bankruptcy counsel per se” but it’s what comes next that’s intriguing:

Goodman Games understands that there may be an arrangement between the Trustee and one or more secured creditors concerning the payment of the Trustee’s fees and expenses, whether in the form of a carve-out from collateral, a sharing of recoveries, or another similar agreement.

To the extent such arrangement exists, Goodman Games respectfully submits that it should be fully disclosed so that the Court and all creditors are aware of the nature and terms of the agreement.

Goodman Games has requested this information from the Applicant. As of the filing of this Response, the Application does not describe any such arrangement.

Goodman Games therefore respectfully requests that, to the extent any such agreement or understanding exists concerning the funding or payment of the Trustee’s professionals’ fees, the Trustee and/or Applicant provide appropriate disclosure so that the Court and parties in interest are fully informed in connection with consideration of the Application.

Woah… that’s a pretty big response. It teases that there’s some backroom discussions and dealings going on with a process that’s supposed to be very transparent.

The bankruptcy court is taking it seriously. They’ve requested a memorandum addressing the matter of “undisclosed arrangements with creditors for the payment of the Trustees fees and expenses.”

No action will be taken on the Application (and the related pending motions for admission pro hac vice) unless and until the Trustee files a supplemental memorandum addressing the matter of undisclosed arrangements with creditors for the payment of the Trustees fees and expenses referred to in the Response filed by Goodman Games [Docket No. 1172]. If such a memorandum is not filed by March 15, 2026, the Application may be denied without further notice or order of court.

In a process that has been full of drama, a new chapter is being written. AS Kurt Vonnegut would say, “so it goes.”

Check out the two court documents below:


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