Monday is a big day in Diamond’s Chapter 11 case and will feature discussion of multiple motions that have yet to be decided. One of the bigger motions is Diamond’s motion to approve procedures for sale or other disposition of consigned inventory. In short, Diamond wants to sell inventory from publishers to help pay back it’s loan from the bank. There’s dispute as to who owns that property.
Last minute filings are coming in before the hearing begins.
A group of publishers that includes Aspen, Black Mask Studios, DSTLRY, Dynamic Forces/Dynamite, Heavy Metal Entertainment, Magnetic Press, Massive Publishing, Oni-Lion Forge Publishing Group, Panini UK, Punk Bot Comic Books/Alien Books, The Penn State University/Graphic Mundi, Titan Publishing, Vault Comics, and Dark Horse have submitted a document featuring the “Disclosable Economic Interest in Case.”
What each publisher has in value is listed out. The grand total is over $1.241 million worth of inventory with the most from Titan Publishing with $413,898.17 and least is Heavy Metal Entertainment’s $363.37.
Also, a document that features agreed upon “facts and authenticity of exhibits” between JPMorgan Chase Bank and the Consignment Group has also been released.
It has information like agreements between Diamond and the Publishers and more interesting bits.
Here’s some of the highlights:
- “the Consignors and not the Debtors were to pay all personal property taxes on the consigned stock that the Consignors delivered to the Debtors; and that the Debtors sent to the Consignors, on several different occasions, correspondence indicating that the Consignors were responsible for paying personal property taxes to the State of Mississippi and/or DeSoto County, Mississippi, because the Consignors owned the stock delivered to the Debtors.”
- “JPM stipulates and agrees that it was aware of the fact that the Diamond Comic Distributors, Inc., debtor (“Distributor”) dealt in consigned goods; and that it had actual knowledge of the Distributor’s participation in consignment transactions during the period from its initial advance of funds to the Debtors through the present.”
- The loan documents between JPMorgan and Diamond are all authentic.
The first two points might be important in that the first one indicates it was the publishers who paid taxes on the product, not Diamond, strengthening proof of their ownership. The second point is important in that it shows JPMorgan was aware that Diamond sold consigned goods when it made a loan, a point of contention at various stages.
