Diamond Comic Distributors is slapped by the Official Committee of Unsecured Creditors

Earlier today, Diamond and JPMorgan Chase Bank filed a motion to extend the deadline to the United States Trustee‘s motion to convert the Diamond Chapter 11 case to either Chapter 7 or dismiss the case. Unfortunately, they didn’t bother telling the committee that represents the creditors (IE the people Diamond owes).

In a filing, the committee that represents the creditors said they contacted Diamond after they saw today’s motion to extend the deadline and had informal discussion with them, but it’s been revealed there was no advance notice given by Diamond as to today’s filing. They also haven’t said why they want to extend the deadline to object to the UST’s motion (and when I read the motion, I was a bit confused as to why too). The committee representing the creditors reached out for answers and Diamond never got back.

So, the committee is a little pissed due to that, Diamond generally not including the committee in important case matters, and the fact Diamond can’t get their operating report filings in on time. They call it a “problematic theme” in the case.

Due to that in the latest motion, the committee “reserves all rights regarding the UST Motion, the relief sought therein, any resolution thereof, and any hearing scheduled in connection therewith.”

There’s a lot going on still when it comes to Diamond’s Chapter 11 filing and while the court has approved the sale of its assets to Sparkle Pop and Universal Distribution, there’s still far more to go in the matter.