As new owners Sparkle Pop withdraw objection to the Diamond Comics bankruptcy settlement, the deal is done for the Ad Hoc comics publishers
“Taking what had appeared to be an intractable dispute that predated his appointment and
continued during his tenure, the Trustee and the Ad Hoc Committee have reached a heavily
negotiated resolution of a significant portion of the consignment related disputes and litigation
pending in this Court and on appeal.”
The Ad Hoc Consignors Committee is made up of Ablaze, American Mythology, Avatar Press, Battle Quest Comics, Action Lab, Drawn & Quarterly, Fantagraphics, Green Ronin, Hermes Press, Living the Line, Paizo, Udon, Zenescope, Boom Studios and Dynamite and covers nearly $50 million of inventory that has been sitting in the former Diamond warehouse in Olive Branch, Mississippi, now controlled by Sparkle Pop. Publishers can reclaim their product, though they will pay for packing and shipping, and they receive only a limited cash amount from prior sales. The bulk of proceeds from sales that occurred after certain dates goes to the estate. The trustee has acknowledged that the publishers owned the consignment inventory at all times.
“The settlement for which approval is sought will result in more than $600,000 being
paid into the Estates, the prompt dismissal of the consignment related litigation between the
Settling Parties, and the ultimate abandonment of the Estates’ interests in any remaining
consignment inventory.”
The earlier settlement covered the Palik Consignment Group made up of Aspen, Black Mask, Dstlry, Heavy Metal, Magnetic, Massive, Oni, Panini, Alien, Graphic Mundi, Titan, Vault, and Dark Horse. That deal included specified fees for Sparkle Pop related to storage and pick-and-pack services, plus release of certain escrowed funds.
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