A late afternoon filing in the Diamond Bankruptcy case suggests that the court ruled for Alliance Entertainment’s $84 million bid over the combined Universal/Ad Populum bid that was favored by Diamond, in a hearing that began on April 7 and ended on April 8. The news was first reported at Graphic Policy.
But there could be more challenges. And more surprise reveals. In the filing – which covers an extension of time allowed for creditors to challenge the purchase agreement – it states:
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;
As before “substantially all of Diamond’s assets” did not include Diamond UK, which Universal was trying to buy prior to the bankruptcy filings even. But might is be included in the amended APA?
Also in a case with this many twists and turns, “a final form of order and revised asset purchase agreement consistent with statements made on the record at the Sale Hearing” might just be legalese, but could also mean MORE changes to the APA from Alliance.
At any rate, comcis industry Kremlinologists will now go back to the interview with Alliance chairman Bruce Ogilvie and scour it for clues to what might happen next – and what will happen to the comics side of Diamond’s business. It’s my understanding that many of Diamond’s biggest creditors were in favor of the Universal bid, believing that Universal was more interested in the underlying comics business. Universal, which is based in Montreal, has long been interested in expanding into the US to sell more comics, games and toys. It appears that they will now have to find a different way to expand that business.
