Dynamic Forces/Dynamite and “old” Diamond Come to an Agreement. Fight with “new” Diamond Continues

The drama regarding Diamond’s chapter 11 process seems to never end and has twists and turns worthy of a great soap opera. In May, Dynamic Forces, aka Dynamite filed a motion to get some of the money it felt it was owned by Diamond. Since Diamond’s chapter 11 filing in January 2025, Dynamic/Dynamited delivered $509,114.21 worth of goods they hadn’t been paid for. It motioned the court to be paid for that as well as administrative expense.

There’s also issues with goods being sold by “new” Diamond, we don’t know how much of Dynamite’s, as well as the ongoing issues regarding consigned inventory that “old” Diamond wants to sell to help pay back some of its loan to JPMorgan Bank.

Dynamic/Dynamite and “old” Diamond have come to an agreement when it comes to some of their issues being fought out currently in court. The new “consent order” would resolve some of the motion Dynamic/Dynamite filed “seeking the entry of an order granting the allowance and requiring payment of an administrative claim.”

The agreement between the two companies proposed is:

1. Dynamic’s claims against Diamond for goods sold up to May 15, 2025 are “satisfied in full by setoff through the satisfaction in full of the Dynamic Forces Revolving Loan Agreement/Promissory Note (the “Note”) dated on or about April 14, 2015; which Note shall be deemed satisfied in full.
2. Claims for goods sold on or after May 16, 2025 (when “new” Diamond began) are to continue. In short, “old” Diamond is off the hook while “new” Diamond has proceedings still going on against it.

This comes after “new” Diamond’s owner Ad Populum/Sparkle Pop filed a lawsuit against Dynamic/Dynamite seeking over $1.7 million for breach of contract and looking for reimbursement for expenses. That was filed in mid-September.