In February, the motion to extend time to “assume or reject executory contracts related to consigned goods” was denied by the court. This was the ongoing question regarding contracts between (old) Diamond and publishers regarding consigned goods. Who “owns” those goods is a contentious issue with publishers wanting their product back while Diamond, and now their Trustee, want to be able to sell the consigned goods to pay back creditors.

The denial of the motion by the Trustee has caused a chain of rejections. Because the contracts were not assumed or rejected by the deadline, publishers have pounced citing law that saws the contracts default to rejected. You can read about that here and here. Because the contracts are rejected, there’s no laid out steps in the contracts as to what happens to consigned goods, primarily the publishers can get them back for the cost of shipping.

This would also throw a wrench into plans the Trustee has proposed that would sell those consigned goods to Sparkle Pop.

Now, the Trustee, Morgan W. Fisher, has appealed to the District Court the decision to not extend the time period regarding the contracts. There have been numerous extensions already regarding the decision.