There were a flurry of filings today concerning Diamond‘s chapter 7 process and we’ll get to them all, but the most interesting (so far) is a motion to approve financing from JPMorgan Chase Bank.

JPMorgan Chase Bank was the bank that had originally done “debtor in possession” financing during Diamond’s chapter 11, in short providing a loan that allowed them to operate through the process. Most of that is paid off, we’ll get to that below, but there’s a need to pay for the current chapter 7.

Fisher is asking the court to enter a new DIP credit agreement. There’s some interesting nuggets from the motion. Here’s some highlights:

WHEREAS, all obligations of the Debtors under the DIP Loan Documents became automatically due and payable in full on the Maturity Date of December 29, 2025. The Debtors’ failure to pay such obligations in full resulted in Events of Defaults under the DIP Loan Documents.

WHEREAS, on March 10, 2026, the DIP Lender filed its proof of claim No. 27 asserting its rights, claims, liens and interests under the DIP Loan Documents and the Final DIP Order (the “JPMorgan Proof of Claim”). In the JPMorgan Proof of Claim, the DIP Lender asserts the current outstanding amount owing from the Debtors to the DIP Lender under the DIP Loan Documents is not less than $6,579,473.92 in the aggregate, with interest, costs and attorneys’ fees continuing to accrue, pursuant to the terms and conditions of the Final DIP Order and the DIP Loan Documents.

Technical Amendments of Final DIP Order and DIP Credit Agreement and Reinstatement of DIP Credit Agreement. The DIP Credit Agreement is reinstated, effective upon the Bankruptcy Court’s approval of this Stipulation. The Maturity Date under the DIP Credit Agreement is extended through and including June 30, 2027. The Maximum DIP Facility Amount is increased to and including $8,200,000. All references in the Final DIP Order, the DIP Credit Agreement and the DIP Loan Documents to the Debtors/Borrowers shall be deemed amended to include the Trustee as the authorized Borrower under the DIP Credit Agreement. Following return of the Letter of Credit (as defined in the Final DIP Order), the DIP Lender is authorized to draw and apply the funds securing the Letter of Credit to the outstanding indebtedness under the DIP Credit Agreement without further order of the Court.

But most interesting is laying out the various litigation going on and how any proceeds will be paid out:

3.1 Alliance Litigation Payment Waterfall. If the Alliance Litigation is concluded and/or Settled in whole or in part, then, the distribution of any Alliance Proceeds remaining after payment of any unpaid portion of the K&G Flat Fee, any amount due to K&G for the K&G Contingency Fee, and any unreimbursed and authorized K&G Expenses shall be made as soon as practicable, and allocated as follows:
(i) First, to repayment of all Trustee Borrowings then outstanding.
(ii) Second, to payment of the Alliance Statutory Trustee Fee;
(iii) Third, to payment of any portion of the Trustee’s Professional Fees in excess of the Trustee’s Professionals Retainer, specifically approved and authorized by JPMorgan in writing following consultation among and between the Trustee and JPMorgan, and pertaining to services and expenses actually performed and incurred in the Alliance Litigation, and
(iv) Fourth, to JPMorgan to be applied to the amounts outstanding under the Final DIP Order, the DIP Credit Agreement and this Stipulation until JPMorgan has been paid in full;
(v) Fifth, to the Bankruptcy Estate. Any remaining portion of unpaid Trustee’s
Professional Fees in excess of the Trustee’s Professional Retainer and not specifically approved and authorized by JPMorgan shall be paid from this portion of the Alliance Proceeds.

3.2 Consignment Litigation Payment Waterfall. If the Consignment Litigation is concluded and/or Settled in whole or in part, then, the distribution of any Consignment Proceeds shall be made as soon as practicable, and allocated as follows:
(i) First, to repayment of all Trustee Borrowings then outstanding.
(ii) Second, to payment of the Consignment Statutory Trustee Fee;
(iii) Third, to payment of any portion of the Trustee’s Professional Fees in excess of the Trustee’s Professionals Retainer, specifically approved and authorized by JPMorgan in writing following consultation among and between the Trustee, JPMorgan and Shapiro Sher, and pertaining to services and expenses actually performed and incurred in the Consignment Litigation, and;
(iv) Fourth,
(a) Seventy-five percent (75%) of the remaining Consignment Proceeds to JPMorgan (to be applied to the amounts outstanding under the Final DIP Order, the DIP Credit Agreement and this Stipulation until JPMorgan has been paid in
full;
(b) Twenty-five percent (25%) of the remaining Consignment Proceeds to the Bankruptcy Estate. Any remaining portion of unpaid Trustee’s Professional Fees in excess of the Trustee’s Professional Retainer and not specifically approved and authorized by JPMorgan shall be paid from this portion of the Consignment Proceeds.

3.3 Avoidance Litigation Payment Waterfall. If any Avoidance Litigation is concluded and/or Settled in whole or in part, then, the distribution of any Avoidance Proceeds shall be made as soon as practicable, and allocated as follows:
(i) First, to repayment of all Trustee Borrowings then outstanding.
(ii) Second, to payment of the Avoidance Statutory Trustee Fee;
(iii) Third, to payment of any portion of the Trustee’s Professional Fees in excess of the Trustee’s Professionals Retainer, specifically approved and authorized by JPMorgan in writing following consultation among and between the Trustee, JPMorgan and Shapiro Sher, and pertaining to services and expenses actually performed and incurred in the Avoidance Litigation, and;
(iv) Fourth,
(a) Seventy-five percent (75%) of the remaining Avoidance Proceeds to JPMorgan (to be applied to the amounts outstanding under the Final DIP Order, the DIP Credit Agreement and this Stipulation until JPMorgan has been paid in full;
(b) Twenty-five percent (25%) of the remaining Avoidance Proceeds to the Bankruptcy Estate. Any remaining portion of unpaid Trustee’s Professional Fees in excess of the Trustee’s Professional Retainer and not specifically approved and authorized by JPMorgan shall be paid from this portion of the Avoidance Proceeds.

Also of note is the mention of hiring Kramon & Graham, P.A focusing on litigation involving Alliance Entertainment, guaranteeing them a minimum of $700,000 from the bankruptcy estate as well as a contingency fee of 25% of any gross recovery exceeding $2.8 million minus the guaranteed $700,000. We’ll have more on them and all of the other motions to bring on new teams to the process in another post.

That’s a lot of money going to the individuals managing the process as well as the banks loaning money, potentially not leaving a whole lot for the publishers owed, and amount that still seems to be up in the air. But, none of this is guaranteed and we’ll see if any objections are filed to this and other motions filed today.

Stay tuned, we’ll have a lot more analysis tomorrow from this filing and more.