The net worth of Diamond Comic Distributors has declined over $2 million in the last two months, according to operating reports filed with the court. The operating reports were filed late, after the bankruptcy trustee filed a motion last month asking the judge to convert the case from a Chapter 11 reorganization to a Chapter 7 liquidation, citing Diamond’s failure to submit the Monthly Operating Reports required for its filing (see “Trust Moves“).
At the end of January (Diamond filed on January 14, see “Diamond Files“), the net worth on the monthly report was $2,527,866; at the end of March, it was $269,300. Ongoing losses, along with the costs of the bankruptcy (see “Diamond Fees Mount“), are making it increasingly difficult for the proceeds of the sale of Alliance Game Distributors and the other Diamond assets (see “Bankruptcy Court Rules“) to cover the full liabilities of the company.
Source: ICV2
