The Ad Hoc Committee Officially Gets its Time Extension while Creditor Expeditors International of Washington are Given Instruction in Today’s Diamond Chapter 7 Update
Two updates have come in today (so far) for Diamond’s Chapter 7 process…
The first, and easiest, is the Ad Hoc Committee of Consignors‘ request to extend the time they could respond to recent motions by Diamond’s Trustee has been approved. The Ad Hoc Committee was able to respond on or before April 24 at 12:00pm ET…
And they did!
You can read their full response here.
The second update is an intriguing one and concerns money owed. Creditor Expeditors International of Washington is seeking $266,855.15 in payment. The court has instructed them to get the right filing in to make that happen looking for a “memorandum that explains the legal and factual justification for such a request.”
Court Instruction – Expeditors apparently seeks both (i) allowance of a Chapter 11 administrative expense claim in the amount of $266,855.15, and (ii) IMMEDIATE PAYMENT OF THAT CLAIM BY THE CHAPTER 7 TRUSTEE. If Expeditors actually seeks immediate payment, it must file by May 15, 2026 a supplemental memorandum that explains the legal and factual justification for such a request under the circumstances of this case; otherwise, the immediate payment request will be denied. (related document(s)[1229] Application for Administrative Expenses filed by Creditor Expeditors International of Washington, Inc.). Responses due by 5/15/2026. (McKenna, Shannon)
Creditor Expeditors International of Washington is a logistics company. In February 2026, their motion for administrative expense was denied by the court. You can see that document below. They had originally filed for the amount but the Trustee was not yet appointed for the case to be served with the request. This is more an administrative bump, so we’ll see if there’s an official, updated request and of course, it’s more money that’s being asked of Diamond.
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