The estate of bankrupt distributor Diamond Comic Distributors, the two groups of companies whose consignment inventory Diamond is holding, Diamond comic asset acquirer Sparkle Pop, the bank, and the Unsecured Creditors Committee have agreed to mediation under the Court’s Bankruptcy Dispute Resolution Program to resolve a raft of thorny issues that have threatened to drag out an already ridiculously expensive bankruptcy process (see “Fees Top $15 Million“), according to a motion filed Wednesday.
Issues that the parties have agreed to negotiate with the help of a mediator include:
- The consignors’ motion that Diamond be forced to decide whether it is accepting or rejecting the consignment agreements that were in force when bankruptcy was filed (see “Consignors Ask Court to Force Diamond to Decide“).
- Any remaining issues surrounding the court’s orders regarding Sparkle Pop’s sale of consignment inventory, and claims regarding the money from consignment inventory sales that Sparkle Pop turned over to the court (see “Court Orders Sparkle Pop“).
- Diamond’s adversary proceedings seeking to seize and sell consignment inventory stored in its warehouse at the time of the bankruptcy (see “Diamond Files Adversary Proceedings“).
- Administrative expense claims by the consignors (see “Diamond’s Post-Petition Debts“).
- Any other related claims.
Attorneys for the parties requested that Hon. Thomas J. Catliota, a Retired Bankruptcy Judge from the District, serve as mediator, and that a conference be held prior to October 29.
The motion further asks that all deadlines related to the issue be waived until the mediation takes place, and that a report on the status of the mediation be required by November 7.
Although there is no guarantee that mediation will produce a settlement, it’s a positive sign that the parties are willing to talk and are in sync on a desire to resolve issues quickly.
Source: ICv2
