Investment bank Raymond James & Associates, Inc., which advised Diamond Comic Distributors on its financing and asset sales, has submitted its final request for compensation to the federal bankruptcy court supervising the Diamond Chapter 11 bankruptcy, and it’s the biggest fee bill to date.
The total amount still outstanding is $3,338,928, which includes $66,098 of expenses. The fees included a $2,511,803 transaction fee for the Universal Distribution purchase of Alliance Game Distributors, $748,721 for the Ad Populum company Sparkle Pop acquisition of Diamond Comic business lines, and $162,308 for the employee group purchase of Diamond UK.
The total transaction value of the three transactions, which included the value of liabilities assumed, was $78,956,625, of which $46,788,692 was paid in cash (with some later incentive payments expected from the Sparkle Pop transaction), and most of the rest in assumed liabilities. Raymond James used that value in calculating its fees under the agreement with Diamond.
The Raymond James fees come on top of the $9.39 million in legal and consulting fees the bankrupt company has racked up through the end of June (see “Diamond Bankruptcy Racks Up Fees“).
Source: ICV2
