Update: Liminal Esports LLC DBA Snowbright Studio files a Motion to Extend its Claim Time Frame in Diamond’s Chapter 11 Case
Update: On June 30 a “deficiency notice” was filed regarding this motion. While the specifics weren’t released, it likely indicates there was a problem with this original filing like it was incomplete or incorrectly filed.
To say Diamond Comic Distributors‘ Chapter 11 case has been a shitshow is an understatement. Yesterday, the news dropped that (old) Diamond was looking to liquidate any stock it had. That hit publishers like a hammer and we’ll have more on that later. Talking to publishers, there was a theme of lack of communication/poor communication and accounting from Diamond to the creditors, aka publishers. That brings us to the first new motion we’ve seen today. Liminal Esports LLC DBA Snowbright Studio has filed a motion to extend the time of its claims date. Snowbright Studio is a tabletop game publisher.
In the motion Liminal Esports LLC DBA Snowbright Studio claims that Diamond failed in its contractual requirement to provide Snowbright Studio with accounting of sales until June 20, 2025. That delayed Snowbright’s ability to provide an accurate proof of claim until June 20. The submission date for claims was May 30, 2025.
Diamond was required to provide a monthly sales report to Snowbright Studio as to what products had been sold. Diamond hasn’t been sending Snowbright that information and didn’t do so until June 20, thirty days after the date claims were due. Once they had that information, $4,122 in sales receipts, $2,320 in floored inventory, they filed the appropriate claims.
Part of Diamond’s liquidation claim is that publishers didn’t file the proper paperwork to make their claim and protect their product. If one doesn’t know what Diamond has on hand. The UCC-1 statements need to be detailed enough to identify the product Diamond has on consignment but doesn’t need to be highly specifics based on the information we’ve found. Could Diamond’s delays in reporting to publishers bight them in their ass?
You can read Liminal Esports LLC DBA Snowbright Studio’s full motion below:
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