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Judge to decide on the Diamond Comics liquidation plan tomorrow

by Sunburst Viral
2 months ago
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The second day of the hearing in the Diamond Bankruptcy case went the distance, with many many motions and counter-motions deliberated on. The case adjourned with at 4, however, with Judge David E. Rice expected to deliver a decision on Diamond’s plan to liquidate their consignment stock at 2 pm tomorrow. 

There have been many twists and turns in the case, but most recently, what we’re calling “Zombie Diamond,” the company run by the bankrutpcy administrators, filed plans to begin a sale of inventory from more than 100 publishers. Diamond claims they can do this because publishers failed to file UCC-1 forms staking their claim to the inventory. 

Various groups of publishers and game manufacturers have files counter-motions, with various precedents to claim that the publishers still own the stock and their interest is not superseded by the bankruptcy proceedings. 

Yesterday, the judge allowed a motion by the Ad Hoc committee that stayed the sale while more information was gathered. It was a promising sign for publishers, but the law could still go against them depending on what Judge Rice rules. 

There will be lots and lots of gossip going around tonight, on the eve of what will be a key development in this whole long, long saga. 

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