As part of Diamond‘s chapter 11 process, it must submit a chapter 11 plan. At the end of July, the company submitted a motion to extend its due date to October 29, 2025 with 90 days to solicit votes for it which would be December 29, 2025.

The reasons given by Diamond, aka “cause,” are:

• It’s a complex case involving four jointly-administered Debtors with over 1,000 creditors and $80 million in debt;
• Diamond has made “good faith progress”;
• There’s still the consignment sale issue to deal with;
• Diamond is paying bills as they come in;
• There’s a plan coming and they need more time to monetize their assets;
• It’s only been seven months…;
• Diamond doesn’t believe this will “pressure creditors.”

Since then the dates for that were changed to October 15 and December 15 due to a response form the Official
Committee of Unsecured Creditors and now that motion with the updated dates of the 15th has now been approved by the court. So, this is all going to at least December.

A pretty important meeting is being held Monday regarding multiple aspects of Diamond’s Chapter 11 process. It’s a packed meeting hitting multiple motions and a lot of back and forth.

An agenda has been released today with what’s being covered. The hearing takes place August 18 and 9:30 am ET.

MATTERS GOING FORWARD

1. Debtors’ Motion for Entry of an Order (I) Approving the Sale and Purchase Agreement Among Debtors Comic Exporters, Inc. and Diamond Distributors Uk, Ltd; (II) Approving Sale of Shares Free and Clear of All Liens, Claims, Encumbrances and Other Interests; and (III) Granting Related Relief [D.I. 638, Filed 7/23/25].
   Objection Deadline: August 13, 2025
   Responses Received:
   a. Reservation of Rights and Limited Objection of JPMorgan Chase Bank, N.A. to Debtors’ Motion for Entry of an Order (I) Approving The Sale and Purchase Agreement Among Debtors Comic Exporters, Inc. And Comic Holdings, Inc., and Diamond Distributors Uk, Ltd; (II) Approving Sale of Shares Free and Clear of All Liens, Claims, Encumbrances and Other Interests; and (III) Granting Related Relief [D.I. 716, Filed 8/13/25].
   Related Pleadings:
   a. Debtors’ Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 a.m. (ET) [D.I. 715, Filed 8/13/25].
   Status: This matter is going forward.
2. Debtors’ Motion for Entry of an Order (I) Approving Procedures for Sales or Other Disposition of Consigned Inventory, (II) Approving the Sales or Other Disposition of Consigned Inventory, and (III) Granting Related Relief [D.I. 531, Filed 6/25/25].
   Objection Deadline: July 16, 2025. Extended for Image Comics, Inc. (“Image”) and JPMorgan Chase Bank N.A., (“JPM”) to July 18, 2025 at 12:00 p.m. (ET); Extended for the Official Committee of Unsecured Creditors (the “Committee”) to July 25, 2025.
   Responses Received:2
   a. Humanoids, Inc.’s Objection to Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances, and (III) Granting Related Relief [D.I. 598, Filed 7/16/25].
   b. Ad Hoc Committee of Consignors’ Objection to Debtors’ Motion for Entry of Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 601, Filed 7/16/25].
   c. Objection of the Game Manufacturers Association to the Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 602, Filed 7/16/25].
   d. Objection to Debtors’ Motion For Entry of an Order (I) Approving Bidding Procedures for Sale or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 603, Filed 7/16/25].
   e. Objection to Debtors’ Motion for Entry of an Order (I) Approving Procedures for Sales or Other Disposition of Consigned Inventory, (II) Approving the Sales or Other Disposition of Consigned Inventory, and (III) Granting Related Relief [D.I. 606, Filed 7/16/25].
   f. Reservation of Rights and Limited Objection of JPMorgan Chase Bank, N.A. to Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory; (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances, and (III) Granting Related Relief [D.I. 611, Filed 7/17/25].
   g. Objection of Image Comics, Inc. To Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 612, Filed 7/18/25].
   h. Statement and Reservation of Rights of the Official Committee of Unsecured Creditors Regarding the Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 653, Filed 7/25/25].
   i. Objection to Debtors’ Motion For Entry of an Order (I) Approving Bidding Procedures for Sale or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 674, Filed 7/31/25].

Related Pleadings:

a. Debtors’ Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 a.m. (ET) [D.I. 715, Filed 8/13/25].
b. Ad Hoc Committee of Consignors’ Witness List for August 18, 2025 [D.I. 717, Filed 8/13/25].
c. Ad Hoc Committee of Consignors’ Exhibit List for August 18, 2025 [D.I. 718, Filed 8/13/25].
d. Consignment Group’s Exhibit and Witness List [D.I. 719, Filed 8/13/25].
e. The Game Manufacturer Association’s Witness and Exhibit List for August 18, 2025 Hearing [D.I. 720, Filed 8/13/25].
f. JPMorgan Chase Bank, N.A.’s Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 AM [D.I. 721, Filed 8/13/25].
g. JPMorgan Chase Bank, N.A.’s Omnibus Reply (A) in Support of Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances; and (B) in Opposition to Consignment Vendors’ Objections to Same [D.I. 728, Filed 8/14/25].
h. Omnibus Reply in Support of Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 730, Filed 8/14/25].

Status: This matter is going forward as to all objections received with the exception of Image’s objection. The Debtors have resolved Image’s objection in principle and the parties are working on a stipulation to be filed with the Court. The Debtors and the Game Manufacturer Association (“GAMA”) have been engaged in extensive negotiations, and the Debtors are optimistic that GAMA’s resolution will be resolved in advance of the hearing.

3. Ad Hoc Committee of Consignors’ Motion to Stay Debtors’ Motion for Entry of an Order (I) Approving Bidding Procedures for Sale or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 649, Filed 7/24/25].

Objection Deadline: August 7, 2025. Extended for the Debtors, the Committee and JPM to August 14, 2025.

Responses Received:

a. Debtors’ Objection to Ad Hoc Committee of Consignors’ Motion to Stay Debtors’ Motion for Entry of Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 727, Filed 8/14/25].
b. Opposition of JPMorgan Chase Bank, N.A. To Ad Hoc Committee of Consignors’ Motion to Stay Debtors’ Motion for Entry of an Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory; (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances, and (III) Granting Related Relief [D.I. 729, Filed 8/14/25].
c. Objection of the Official Committee of Unsecured Creditors to the Ad Hoc Committee of Consignors’ Motion to Stay Debtors’ Motion for Entry of Order Approving (I) Procedures for Sale or Other Disposition of Consigned Inventory, (II) Approving Sales or Other Disposition of Consigned Inventory Free and Clear of Liens, Claims, Interests or Encumbrances and (III) Granting Related Relief [D.I. 735, Filed 8/14/25].

Related Pleadings:

a. Line Filing Supplemental Cases Supporting Motion to Stay [D.I. 713, Filed 8/12/25].
b. Debtors’ Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 a.m. (ET) [D.I. 715, Filed 8/13/25].
c. Ad Hoc Committee of Consignors’ Witness List for August 18, 2025 [D.I. 717, 8/13/25].
d. Ad Hoc Committee of Consignors’ Exhibit List for August 18, 2025 [D.I. 718, Filed 8/13/25].
e. JPMorgan Chase Bank, N.A.’s Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 AM [D.I. 721, Filed 8/13/25].

Status: This matter is going forward.

4. Motion Seeking Entry of an Order Requiring the Debtors to Assume or Reject Executory Contracts with Members of Ad Hoc Committee of Consignors and for Related Relief [D.I. 679, Filed 8/1/25].
   Objection Deadline: August 15, 2025

Responses Received:

a. Debtors’ Objection to Motion Seeking Entry of an Order Requiring the Debtors to Assume or Reject Executory Contracts With Members of Ad Hoc Committee of Consignors; and for Related Relief [To be filed].
b. JPMorgan Chase Bank, N.A.’s Objection to Motion Seeking Entry of an Order Requiring the Debtors to Assume or Reject Executory Contracts With Members of Ad Hoc Committee of Consignors; and for Related Relief [To be filed].

Related Pleadings:

a. Debtors’ Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 a.m. (ET) [D.I. 715, Filed 8/13/25].
b. Ad Hoc Committee of Consignors’ Witness List for August 18, 2025. [D.I. 717, Filed 8/13/25].
c. Ad Hoc Committee of Consignors’ Exhibit List for August 18, 2025 [D.I. 718, Filed 8/13/25].
d. JPMorgan Chase Bank, N.A.’s Witness and Exhibit List for the Hearing Scheduled to Begin on August 18, 2025 at 9:30 AM [D.I. 721, Filed 8/13/25]

Status: This matter is going forward.

5. Debtors’ Motion for Entry of an Order Approving Fifth Stipulation Between Debtors and JPMorgan Chase Bank, N.A., Amending Dip Credit Agreement [D.I. 527, Filed 6/24/25].

Related Pleadings:

a. Order Approving Fifth Stipulation Between Debtors and JPMorgan Chase Bank, N.A., Amending Dip Credit Agreement [D.I. 559, Entered 7/3/25].

Status: This matter is going forward as a status conference.

August 18 is the next big day in Diamond’s Chapter 11 drama. A hearing will be held on that day at 9:30 am covering a whole host of topics and motions.

The hearing includes:

1. Diamond’s motion for the sale or disposition of the inventory it still has
2. The sale and purchase of Diamond UK
3. The Ad Hoc committee’s motion for a stay in Diamond’s motion for the sale of inventory
4. A motion dealing with an order that’d require Diamond to assume or reject the contracts it has with some of the publishers

That’s a lot to cover in a single say and with that there’s various witness and exhibition lists that have been filed.

For the sale of Diamond UK:

• Diamond will call Robert Gorin, Diamond’s Co-Chief Restructuring Officer as a witness and the exhibit is the purchase agreement for the sale.

JPMorgan filed a motion about the reservation of rights and limited objection concerning this one. They want to get paid first if this is goes through.

For the sale of the goods, that’s a whole other thing…

Diamond has:

1. Gorin will be called as a witness
2. Exhibits include inventory reports, sales reports, transition agreements, distribution agreements, and more.

The Ad Hoc Committee of Consigners will be bringing:

1. Distribution and supply agreements with multiple publishers, reports of sales, and inventory reports (which will be produced through discovery and due August 15)
2. For witnesses they plan on calling a representative for Diamond as well as Steve Leaf, the Client Consignor Representative.

Movant, which is a bunch of other publishers said it’s:

1. Submitting contract terms, sales reports for products shipped, as well as documents they find from Diamond and JPMorgan Chase Bank from their discovery, and any documents others submit
2. For witnesses, they’re calling a corporate designee of each of the 14 members of this group, a corporate designee for Diamond, a corporate designee for JPMorgan, and other witnesses from the other witness lists.

Finally, the Game Manufacturer Association (GAMA) has their list and notes that discovery isn’t due until August 15 so might have more. They are:

1. Calling a representative of Diamond as a witness
2. For exhibits, it has listed the distribution agreement with three game publishers

JPMorgan Chase Bank has its own witness and exhibition list. That features:

1. The final order between JPMorgan and Diamond for its financing

This will be a big day, so stay tuned for further reports and check out all of the documents below:

While there has been hints in various previous motions that this would happen, multiple motions have been filed requesting discovery in Diamond‘s Chapter 11 case.

What is Discovery?

Discovery is a process that generally takes place pre-trial where the parties exchange information and evidence relevant to the case. Examples are emails, slack messages, text messages, documents, and more.

This is a pretty big deal in that it forces Diamond to reveal internal emails, documents, and other communication regarding various aspects of the Chapter 11 case. The parties that requested this will go through the material collected and provided to find relevant information. Basically, it’s a request for evidence regarding the case and there have been multiple of them.

• Around July 31, Dynamic Forces had the first request. In it, they requested Diamond produce documents as well as answer questions regarding Dynamic and Dynamite‘s fight over payment and merchandise.

• Around August 5, the group representing Aspen, Black Mask Studios, DSTLRY, Dark Horse, Dynamic Forces/Dynamite, Heavy Metal, Magnetic Press, Massive Publishing, Oni-Lion Forge Publishing, Panini UK, Punk Bot Comics/Alien Books, Titan Publishing, and Vault Comics sent a similar request also asking for documents as well as answers to questions.

• Around August 5, a subpoena to testify directed to Sparkle Pop was served to their counsel and on August 6, a request was sent to Diamond to product documents as well as answer questions, this from the Ad Hoc Committee of Consignors.

• Finally, around August 8, GAMA, which is helping Skyscraper Studios, Roll for Combat, Liminal Esports, and Snowbright Studio asked for documents as well as sent a set of questions like the previous but also sent a list of facts they hope Diamond agrees to (an example would be how much stock Diamond accepted).

All four of these are big deals because it forces Diamond to turn over material that may hurt their case when it comes to their want to sell items on consignment and even what Diamond may owe the publishers. We don’t know what specifically was asked for but it could be slack messages, email, internal documents, etc.

The next steps are:

1. Diamond has to pull all of the documents and communications requested and figured out what is privileged (conversations with their lawyer) and what is not;
2. Hand it over to each of the groups that made the requests;
3. Assuming there’s no disagreement over privilege, the requestors would then need to go over every document and conversation for details and see what’s relevant and helps their case;
4. From there, we might see hearings, testifying, motions, and maybe some of the documents requested in filings.

This is a big deal in that it forces Diamond to show their hand in a way and arms the creditors in their fight to get paid and their stock returned. They’re going on offense and this is a big part of that. There could be something to help their case or their could be nothing. We may never know the answer to that. It’s an escalation in the case that’s well worth watching.

In late June, Diamond filed a motion to approve the procedures for “sale or other disposition of consigned inventory” and more. In short, it has consignment inventory sitting in a warehouse from publishers and it wants to sell that inventory to pay back its debt. What the inventory is, no one really knows beyond Diamond right now and the money would likely go to pay back JPMorgan Chase Bank, its lender during the chapter 11 process.

As you can imagine, the response to Diamond’s plan has been negative with publishers calling it theft and about two dozen of them filing various motions and objections to the plan.

Hearings have been set concerning various motions regarding Diamond’s plan.

Beginning August 18 at 9:30 AM, there will be a hearing to consider:

638 − Motion to Sell Description of Assets attached as Exhibit B Free and Clear of Liens and Notice of Motion. Fee
Amount $199. Notice Served on 7/23/2025, Filed by Diamond Comic Distributors, Inc.. Objections due by 08/13/2025. with three additional calendar days allowed if all parties are not served electronically. Hearing scheduled for 08/18/2025 at 11:00 AM − Courtroom 9−D. Modified on 7/23/2025 to fix text to correctly reflect hearing information provided in notice. Get more info on this motion.

649 − Motion To Stay Debtors Motion For Entry of Order Approving (i) Procedures For Sale or Other Disposition of Consigned Inventory, (ii) Approving Sales or Other Disposition of Consigned Inventory Free And Clear of Liens, Claims, Interests or Encumbrances And (iii) Granting Related Relief Filed by Ad Hoc Committee of Consignors (related document(s)531 Motion to Sell Free and Clear of Liens and Notice of Motion filed by Debtor Diamond Comic Distributors, Inc.).

679 − Motion Seeking Entry of an Order Requiring the Debtors to Assume or Reject Executory Contracts with Members of Ad Hoc Committee of Consignors and for Related Relief Filed by Ad Hoc Committee of Consignors. Get more info on this motion.