After a long, messy fight among numerous parties connected to the Diamond Comic Distributors bankruptcy, executives have moved to liquidate the company through a recently filed Chapter 7 proceeding.
The decision comes after Diamond filed for Chapter 11 at the start of this year with the hope of restructuring the company. That effort encountered numerous twists and turns as well as suits and countersuits, including a lawsuit filed by a group of publishers accusing Diamond of selling their titles the company had been holding on consignment without their permission.
The decision to file for Chapter 7, according to various reports, came after Diamond’s banks pulled their financing, essentially forcing Diamond executives to sell off its remaining assets. What those assets actually are and who owns them will be determined by the bankruptcy court, and observers believe the Chapter 7 proceeding could also be a long one.
The bottom line for publishers still caught up in the Diamond mess is that they are even more unlikely receive much, if anything, of the money and/or inventory owed to them by Diamond.
