In a stipulation to extend the period in which unsecured creditors may assert a challenge under the final dip order, it would seem that the cat is out of the bag and Alliance Entertainment might be the winner when it comes to the bid for Diamond Comic Distributors and their Chapter 11 filing.
The challenge to the final dipper order allows parties in interest, like creditors or a creditors’ committee, to object to the order and contest specific terms, such as the validity of prepetition liens or obligations.
In the order this stood out with the bold part the most interesting aspect:
WHEREAS, on April 8, 2025, the Court held a continued hearing (the “Sale Hearing”) on the Debtors’ Motion for Entry of an Order (I) Approving the Sale of Substantially All of the Debtors’ Assets Free and Clear of Liens, Claims, Interests and Encumbrances (II) Approving the Assumption and Assignment of Executory Contracts and Unexpired Leases; and (III) Granting Related Relief [D.I. 168], at which the Court indicated that it was prepared to enter an order approving the sale of substantially all of the Debtors’ assets to Alliance Entertainment, LLC (the “Sale”), upon the Debtors’ submission of a final form of order and revised asset purchase agreement consistent with statements made on the record at the Sale Hearing; and
On Monday, a hearing was held to nail down the final winning bid for Diamond Comic Distributors which declared Chapter 11 in January 2025. Alliance Entertainment was initially announced as the winning bid. On Saturday, in a shock, Diamond said it was going with a different bid which then led to objections to that from Alliance. Lots of bankruptcy drama! It has been quiet as to who won the bid until now.
It would seem that creditors have until April 25 when the sale hearing closes and this drama might be behind us… maybe…
Check out the full court document below.
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Source: Graphic Policy
