Tag Archives: jp morgan chase

Diamond vs. Publishers Heads into 2027

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We brought the news in early March that there was some movement in the court case between Diamond and numerous publishers. The various parties and Diamond met on February 26 and March 3-4 in an attempt to find a resolution, the nature of the claims and defenses, to arrange disclosures, and propose a discovery plan. On March 4, there was a filing hashing out the plan for discovery, the process where documents pertaining to the case are handed over.

The issue is who owns the consigned goods that are still being held by Diamond. Ablaze, Battle Quest Comics, American Mythology Productions, Action Lab Entertainment, BOOM! Entertainment, and Fantagraphics are all fighting to get their inventory back. Diamond wants to keep the inventory to be able to sell it off to pay creditors. JPMorgan Chase Bank wants Diamond to sell off the inventory so it can get paid back by Diamond. Sparkle Pop is involved because it has sold off some of the inventory when it wasn’t supposed to and currently is holding the physical product in a warehouse it controls.

We said in our recent reporting that the earliest the trial would happen is November but likely December due to holidays. Well, we were off, because there is now a “hearing on dispositive motions” is set for January 27, 2027. That’s a hearing that asks the court for a ruling before a trial begins. The trial is expected to last 3 to 4 days.

How recent moves to have Diamond’s claims over the consigned inventory dismissed by other publishers, as well as the Trustee’s proposed deal with Sparkle Pop to sell the consigned goods impacts this is unknown… but get settled, because this could go for quite a while.

Fellow is an example of one of the orders released today.

Update: JPMorgan and Sparkle Pop’s Time to Respond to Questions over their Interest in Diamond Inventory Extended

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The Diamond chapter 11 process is now chapter 7 and with that, it creates a ripple across numerous related lawsuits. One such group of lawsuits involves JPMorgan‘s “Validity, Priority or Extent of a Lien or Other Interest in Property.” In question is inventory that Diamond has that is consignment goods provided by publishers. The goods are being held in a warehouse controlled by Sparkle Pop. It is before the court as to figure out who actually owns the inventory. Does Diamond, who can then sell it and pay back its creditors, like JPMorgan? Also, what claim does JPMorgan have as far as the inventory since the inventory was used as collateral by Diamond to get a loan?

The question concerns multiple lawsuits spanning multiple publishers with all of the various court documents similar. JPMorgan now has until February 16, 2026 to respond to this.

Update: Sparkle Pop‘s time to respond to the same complaint has also been extended to February 16. The order is below.

Original complaint example:

Diamond Chapter 11 Lawsuit Sidequests Get Delayed Due to Chapter 7

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Diamond‘s chapter 11 case turned into chapter 7 at the end of 2025 and is now moving ahead with the appointment of individuals to manage the process. A question has been out there, how does that impact the numerous lawsuits that have spun out of the chapter 11. There’s lawsuits concerning inventory that (old) Diamond claims it has a right to but is being managed by (new) Diamond, aka Sparkle Pop, and of course (old) Diamond’s loan lender JPMorgan Chase Bank wants their money, so they have a claim too. It’s a lot to keep track of, dozens of separate cases at this point with most being rather quiet but every so often dust gets kicked up. Today was one of those days.

So far today, BOOM! Entertainment, Living the Line, Herman & Greer, Green Ronin Publishing, Fantagraphics, Ablaze, Zenescope, Action Lab Entertainment, American Mythology, Avatar Press, Battle Quest Comics, and Paizo Inc. all have had stipulations released delaying action in their cases.

Each are fighting over that “consignment stock” and the stipulations extend the time for responses. In October, Diamond launched cases against individual publishers over that stock.

In December, Diamond’s chapter 11 was converted to chapter 7 with a stay in place until February 16, 2026.

So, when it comes to all of these side lawsuits and fights, responses are now delayed until that date, February 16. So, whatever comes next, we have a month before we’ll find out.

Diamond’s lender JPMorgan Chase has a Limited Objection and Reserves Rights Concerning Diamond’s Consignment Plan

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JPMorgan Chase

Publishers have been filing objections to Diamond Comic Distributor‘s motion that would allow them to sell, liquidate, dispose of, inventory it currently still has. Many publishers have already been vocal about the motion and many have responded to our inquiries with “no comment” because it’s an ongoing legal matter. So far, TwoMorrows Publishing, Magma Comix, and Graphitti Designs, Abstract Studio, NBM, William M. Gaines, Agent, Inc., Humanoids, a joint filing by 13 publishers, GAMA, the Ad Hoc Committee of Consignors, and Cryptozoic Entertainment have each filed objections to the motion. Now, Diamond’s bank lender JPMorgan Chase is getting in on the action with a “limited objection” and “reservation of rights.”

JPMorgan Chase Bank is Diamond Comic Distributor’s lender, having loaned out money to keep them operating through the chapter 11 process. The maturity of that is August 23, 2025 currently.

JPMorgan Chase in their motion through “reservation of rights,” stand that they need to be paid first. So, any money from the consignment sale should go towards JPMorgan Chase to pay off the loans and then publishers or anyone would come second. They also want to be able to object to “any Consignment Sale that is legally or factually insufficient or impermissible, proposed in derogation of Lender’s consultation rights, not proposed in good faith, or violative of the terms of the Final DIP Order or applicable law.” In short, they want to get paid, and need to get it all paid, and if they’re not first, they’re going to object to it. If the court or anyone attempts to mess with that… objection!

In short, JPMorgan Chase has planted a flag for the future when it comes to decision concerning Diamond’s consignment motion.

Court Approves Diamond’s Fifth Stipulation with JPMorgan Chase Extending the Maturity Date

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Diamond Comic Distributors

During Diamond‘s Chapter 11, they have taken a line of credit from JPMorgan Chase to keep the lights on, known as a DIP (Debtors in Possession) Credit Agreement. This agreement has been changed and amended multiple times so far with the “fifth stipulation” now approved by the court.

This matters because it impacts what Diamond owes to whom and when it has to be paid back. It tends to be that banks are one of the first to get paid back in bankruptcy cases, so what agreements with banks matter to the creditors that Diamond owes.

This order extends the Maturity Date of the borrowing through the wind-down of the chapter 11 case. That provision now reads:

means, at the election of the DIP Lender, the earliest to occur of: (a) the date on which the DIP Lender provides, via electronic or overnight mail, written notice to counsel for the Debtors and counsel for the Committee of the occurrence and continuance of an Event of Default; (b) the effective date of an Approved Plan; (c) the filing of any chapter 11 plan other than an Approved Plan by the Debtors or any party in interest; unless such plan contemplates the indefeasible payment in full in cash of the Aggregate Credit Obligations; (d) the date that the Bankruptcy Court orders (x) the conversion of the Chapter 11 Cases to Chapter 7 liquidations, or (y) a dismissal of the Chapter 11 Cases; or (e) August 23, 2025.

Previous changes have impacted the maturity date as well as the amount. While these types of story aren’t exciting, they do mean a lot as Diamond has yet to come up with its plan to pay back its creditors (aka comic and publishers among others) and its recent announcement to liquidate stock it has on consignment to raise money.

Geppi Family Enterprises, Diamond’s Parent Company, Adds to its Leadership Team and Opens Up Credit with JP Morgan Chase

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Steve Geppi, Chairman and CEO of Geppi Family Enterprises

Geppi Family Enterprises (GFE), the parent entity of Diamond Comic Distributors, Alliance Games Distributors, and other Stephen A. Geppi-owned companies, has expanded its leadership team. In addition, it has announced changes to help expand into new product lines and markets to raise sales and profitability.

Formed in 2015, GFE was created to encompass all the companies owned by Diamond Comic Distributors’ Founder and President & CEO, Stephen A. Geppi. The holding entity is comprised of a dozen companies, among them Diamond Comic Distributors, Alliance Game Distributors, Diamond Select Toys, Baltimore Magazine, Hake’s Auctions, Diamond International Galleries, and Gemstone Publishing.

Stan Heidmann, President of Geppi Family Enterprises

GFE has updated its current leadership structure to add an Office of The Chairman, comprised of Geppi as Chairman and CEO; current GFE Executive Representative, Joe Foss, who will serve as Vice Chairman; and Stan Heidmann, who will join the team as President.

Prior to joining GFE, Heidmann was Finance Division Executive – Revenue Management at PepsiCo, where he led their distribution, revenues and finance teams for the Mid-Atlantic region. 

In addition to the hiring of Heidmann, Geppi also announced that he will be establishing an Advisory Board for the Geppi Family Enterprises level.  The board will be comprised of accomplished executives from a variety of different industries, including the comic book industry.

Geppi also announced that both Diamond and Alliance Game Distributors are entering a new banking relationship with JP Morgan Chase. The new credit facility will support Diamond and Alliance’s efforts to expand, create new products, and raise profitability.