Posted in : Comics , Current News| Tagged : AENT , bankruptcy , diamond
Alliance Entertainment , or AENT , is now action Diamond Comic Distributors over the failure auction … and what go on afterwards .
Article Summary
In January , Diamond Comic Distributors , the biggest distributer of amusing books to risible computer memory in the world , declared Chapter 11 bankruptcy . This enabled it to keep operate while it tried to find a more permanent solution to its debts . But as the court hearing approaches in a matter of hours , things have suddenly get a lot mussy . This is what we know , from the top , with liaison .
But it does mean that this court hearing is depart to be far more of a fight . Witnesses call include the pursuit :
While the display being offered are thus :
Alliance Entertainment or AENT is now suing Diamond Comic Distributors
These pieces of grounds were all labelled D1 - D20 , which looked like a very dull function - play secret plan consequence weather sheet . But then , AENT filed more adversarial paperwork . And this is where it gets really interesting . Because now AENT is process Diamond Comic Distributors .
They state that " this natural process come up from Debtors ' inexplicable refusal to search this Court ’s approval of , and to consummate , the sale of their assets to the successful bidder at an auction they conducted . And claim that the debtors " violated the Bid Procedures Order , conducted the Auction in a manner that was unjust to any party other than their preferred purchaser , and — despite having designated AENT as the Successful Bidder — move with extreme bad faith in the full point be the Auction . debitor ' bad faith is illustrated by their : ( i ) take that AENT include raw economical terms in its winning bidding that were not let in in AENT ’s bid and not address at the Auction ; ( ii ) refusal to engage in any negotiations over the terminal figure of AENT ’s asset purchase agreement ( the " AENT APA " ) ; and ( iii ) tersely advising AENT that they mean to seek Court approval of the Backup Bidders ' inferior bid . "
AENT states that " the purpose of the Auction was to identify the highest and good bid for Debtors ' assets . Debtors , however , never feel bound by the Bid Procedures Order , used the Auction to channelise the sales agreement of their asset to the stalk Horse Purchaser . In pursuit of their illicit end , Debtors concealed corporeal information from bidder ( other than the stalk Horse Purchaser ) at the Auction and changed the formula of the Auction after it began so as to ensure that the stalk Horse Purchaser emerged as the party with the gamey and best offer . Their efforts break miserably when the stalk Horse Purchaser — who , at the outset of the Auction , was secretly teamed up with another bidder , Ad Populum LLC ( " Ad Populum " ) , to increase the haunt Horse Purchaser ’s fiscal punch — affirmatively dropped out of the bidding , leaving AENT ’s offer as the highest and salutary dictation . Having failed in their attempt to influence the upshot , Debtors were tighten up to declare AENT the Successful Bidder at the conclusion of the Auction . Indeed , even after Debtors declare AENT the Successful Bidder , Debtors spoke to Universal off the record before finally declare what was obvious to all in attendance , that AENT was the winner of the Auction . "
Basic Fun! bid fifty million for Diamond
We also learn some of the other bidders . Basic Fun ! , the owners of Care Bears , Tonka , Lite Brite , K’nex , Lincoln Logs , Tinker Toys , Playhut , Uncle Milton , Fisher Price Classics , Mash’ems and Littlest Pet Shop had submitted a fifty million dollar bid for the whole business . AENT states that " after the Auction began , but before bidding commenced , Debtors herald , to the shock of AENT , that they had arranged for Universal and Ad Populum to bid as a chemical group . Ad Populum was interested in purchase only sealed assets of Debtors , and leave the two bidders to collude with one another increased their financial wherewithal to outbid AENT and Basic Fun ! Debtors trust this would further their finish of steering the sale to Universal , their preferred purchaser , without heed to the interestingness of the acres or creditors . "
AENT , however , bid $ 72,245,000 . " Angelo Exarhakos , on behalf of Universal / Ad Populum group , then stated , " We ’re out , " indicating they would not counter with another play . At this point , the Debtors stopped the Auction and touch privately with Universal . The details of that discussions were never disclosed . Upon resuming the Auction , Raymond James proceeded to hold AENT was the successful bidder and Universal / Ad Populum as the back - up bidder .
But AENT states that " Closing the Auction did not stop Debtors from soliciting young bids . In the day follow the Auction , Debtors negotiate in secret with Universal / Ad Populum . " And it seems that the announcement of Robert Gorin in the grounds above will be part of this pillow slip and that " Debtors never engaged in " good trust " or " arm ’s length " negotiations with AENT . "
AENT title that they fall out up seeking assurances and amendment to the great deal verbally made during the auction summons , and there was a flake of back and forth . " At this spot , Debtors discontinue all communication with AENT and refused to reply to the last version of the agreement communicate by AENT ’s counsel . Additionally , AENT arranged for their accountants to meet with Raymond James on March 27 , 2025 to discourse the possibility of create audited financials since Debtors had halt preparing such financials in or around 2023 . Raymond James abruptly cancelled the meeting on the dawn of March 27 , without any explanation or attempt to reschedule . "
AENT’s total bid for Diamond was $85.37 million
They also state that " In fact , AENT increased the full economic value of its bid following the Auction in response to Debtors ' demands . The entire additional value of AENT ’s pass as a resolution of Debtors ' demands exceeds $ 14,400,000 for a total consideration of approximately $ 85.37 million . "
Four days later , they state that the " Debtors ' counsel sent an email outlining five alleged inconsistency between the March 28 variant of the AENT APA and the agreement localise on the criminal record at the Auction . In an e-mail sent on March 31 , 2025 , at 1:35 p.m. , AENT acquiesce to four of the five period raised by Debtors ' counsel and explained that the fifth pointedness was a significant fresh economical condition that was not included in any bidding made by AENT up to that detail nor discourse at the Auction . In that same email , and in subsequent emails transport around the same time , AENT ’s counsel request a phone league with Debtors ' professional to discuss their points . A call was bear at 6:00 p.m. that evening , survey which , at 8:54 p.m. , AENT ’s counselor transport a further revised agreement adopting four of the five additional point requested by Debtors , but not comprise debitor ' young economical ask . "
The item of this dissonance are not clarified in the filed paperwork . " The next day , April 1 , 2025 , at 12:29 p.m. , Debtors ' counsel sent an e-mail outlining seven additional revisions to the last version of the agreement . AENT agreed to each of the seven new peak in the interest of finalizing the agreement so Court approval could be seek at the listening , which had been adjourned to April 2 , 2025 . Debtors disregard this communication , and several succeed - up communication theory requesting a reply . "
Then the biz changed , " At 3:57 p.m. on April 1 , 2025 , Debtors ' counsel notified AENT that Debtors would look for approval to trade substantially all plus to Universal / Ad Populum . The poster from Debtors ' counsel suddenly state , " . . . the Debtors , after consultation with the Consultation Parties , will be seeking favorable reception of the sale at tomorrow ’s hearing to the backup bidder . " Later that same day , Debtors filed with the Court Mr. Gorin ’s declaration in which he states " following the Auction , Debtors have stay to negotiate in practiced faith and at arm’s - duration with Alliance Entertainment and Universal / AP with respect to their respective minutes . " For the first fourth dimension , AENT larn that Debtors weresecretly soliciting extra offers from Universal / Ad Populum . "
And on the 5th of April , the statement that Diamond Comic Distributors would be buy by Universal and Ad Populum was filed . AENT states " The transactions described in those agreement have a less value than that of the AENT APA and , notably , do not include the revisions the Debtors demand of AENT follow the Auction . At no clock time has AENT go against its promise to consummate the purchase of Debtors ' plus . In fact , AENT increased the full note value of its bid following the Auction in reply to Debtors ' demands . The total additional value of AENT ’s crack as a result of debitor ' demands exceeds $ 14,400,000 . AENT stands quick , willing , and able-bodied to exit the dealings on April 10 , 2025 . "
AENT asking for a temporary restraining order on selling Diamond to Universal/Ad Populum
AENT is filing a motion for preliminary injunction with a temporary restraining order against the debitor selling Diamond to anyone else other than AENT . They state that the debtor " breach the Bid Procedures Order , impart the Auction in a way that was unjust to any party other than their preferred purchaser , and despite having doom AENT as the Successful Bidder — represent with extreme high-risk trust after the Auction , including making novel economic demands that were never admit in AENT ’s dictation and not addressed at the Auction , refusal to charter in any negotiation over the damage of AENT ’s asset leverage concord , and at last advising AENT that they intend to seek Court blessing of the Backup Bidders ' deficient bid .
The Court auditory modality will be held today at 10 am . How this all affects things , we wait to see .
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