After weeks of relatively boring filing in Diamond’s bankruptcy case, things get heated once again as the publisher wants to pay.
Wear a hat with a graphics policy to stay up to date with the latest news. Late Tuesday, they reported on filings that have not yet hit the main docket page. Dynamite Entertainment, the last remaining diamond “exclusive” publisher, has filed a motion calling for the payment of $509,114.21 worth of products shipped between 4/27/25 and 5/11/25. They also seek attorney fees, interest and late fees.
Dynamite is the last major publisher with no new distribution partners. CEO Nick Barrucci commented on a story I wrote for PW:
“We had a conversation with each of our leading distributors. We are evaluating options when a new chapter in the comic industry begins, so we will be discussing with the new owners of diamonds.” “We are fortunate to be in a position to work with multiple distribution options in the industry. Given our size, we are fortunate that we don’t need to immediately decide where to distribute our books.”
Getting payments for these books seems to be a priority now.
However, all of that money and inventory is tied to bankruptcy proceedings. New diamond owner Ad Populum sent a statement yesterday to the publisher. The previous ones are responsible for bankruptcy proceedings, and as they point out, “no payment timeline is provided at this time.” You can read the following letter in full:
it hurts. But for everyone who joking about the comic-complicated bankruptcy proceedings ever, the unfortunate truth is that the money has always been bankrupt for months. In another filing reported by the Graphics Policy, Diamond pushed back the deadline and submitted plans until September 11th.
In some kind of better news, Diamond (against the graphic policy) owes only Chase Bank (the source of Dip (debtor’s debtor) funding) to $5.8 million. This is far less than the $41 million they borrowed from Chase for their original dip when they filed for bankruptcy on January 14th. It is not entirely clear whether this is a new loan. But Chase is a safe lender. Comic Publishers are unsecured. The May 1 filing suggests that the dip loan has been repaid. Good news for publishers. This is because the settlement will only be obtained after the secured creditor is repaid.
Here’s the letter to the publisher I went out yesterday:
Important updates for outstanding invoices and future payments
Dear Diamond Consignment Distributor:
As I navigated the ownership transition, I wanted to address questions I received regarding outstanding invoices and future payment expectations.
Bankruptcy real estate responsible for claims related to all sales prior to May 15th
Invoices prior to May 15th are based on bankrupt property liability. These obligations arose in the proceedings of Chapter 11 and were related to consignment inventory held at our warehouse. We understand that the property is reviewing these outstanding amounts. However, no payment timeline is provided at this time.
New ownership of any invoices related to all sales activities will be liable for after 16 days.
These obligations are completely separate from bankruptcy properties and are actively processed and paid under normal operating procedures. Our goal is to rebuild trust by advancing action and consistency.
The difference between bankrupt real estate and new organizations
I understand that the distinction between bankruptcy property and new organizations can be confusing. To be clear: Bankruptcy Property is a separate corporation responsible for resolving obligations arising prior to the sale on May 15th.
Currently operating under AD Populum’s ownership, Diamond is a new entity and new organization, responsible for all obligations since May 16th. Our focus is on moving forward with a clean slate and restoring the stability of our partners.
We are committed to maintaining strong and continuous relationships with our vendor partners. If you have questions about a particular invoice or if you can help you determine which payments fall under which period, please contact the AP contact information.
Thank you for your patience as we are making this transition.
In a letter to retailers last week, Ad Populum assured them that they were at work:
Dear Diamond Customer:
As you know, Diamond Comic Distributors are currently part of the AD Populum family. This is a new beginning from a period of transition and a much-enhanced product product future. Of course, it brings a question to it.
Many decisions are still in shape and we are actively working on what this next chapter should look like. That means some short-term uncertainty. This is a complicated process and we focus on deliberately moving forward and making decisions to maximize us for long-term stability. That being said, we want to address some of the more immediate questions about your mind:
If you order with us, will you receive it?
yes. Order processing and fulfillment operations remain active, and ensuring that orders are fulfilled remains a top priority.
How about your PRH order?
We have suspended PRH orders for products on sale dates since June 25th, and have worked with publishers to resolve any confusion and provide clear guidance.
What about general comics?
We work with publishers and vendors to ensure the continuity of the entire category that is most important to your business. Details will be taken into consideration, so we will share the update. In the meantime, the retailer service website support centre is a great place to go with your questions and concerns. We appreciate your partnership and your patience as we work to shape the future of diamonds together.
However, in a note on Diamond’s website, they noted that phone help is no longer available.
Retailer Services phone queues are not available during the migration to AD Populum while Diamond’s retailer services team responds to customer emails and supports tickets Monday through Friday from 9am to 6pm.
For convenience, we recommend submitting your ticket through the support center on the Retailer Services website.
In short… I’ll go into this in more detail.
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