post in : Comics , Current News| Tagged : diamond , Raymond James
Diamond Comic Distributors hired an investment banker three months before declaring bankruptcy .
The firm ofRaymond JamesFinancial has been engage by Diamond Comic Distributors for the sum of $ 50,000 a year as the Debtors Investment Banker inDiamond ’s Chapter 11 failure traffic . However , even though Chapter 11 proceeding were announced this calendar month , he was engage on the 24th of September last year by Diamond in a different character as its solitary and exclusive investiture banking advisor . Back then , his duty was to facilitate a sale , a merger , or outside funding for Diamond Comic Distributors , analyzing restructuring alternatives , stop up post - petition financing , and managing the sale process for potential buyers , including batten down a stalking horse bidder . However , there were also clauses regarding Diamond going belly-up and the role that the Raymond James business firm would fiddle , with his payments guarantee from usable funds .
For the failure outgrowth , the Debtors Investment Banker was charge as a disinterested political party to represent the interests of those to whom Diamond owes money . Raymond James Financialstates that it provides spherical investment banking service , has a consecrate restructuring group , and has experience in numerous mellow - profile bankruptcy cases .
As well as a $ 50,000 a month requital for any Financing Transaction harmonise upon ( including a year after the conclusion of any contract bridge with Diamond ) , they have to pay the banker 1.5 % of the process of any older secure debt , 2 % of the yield of all other debt , and 6 % of fairness or equity - linked security arouse . And for debtor - in - possession financing , known as " DIP Financing " for a company run through Chapter 11 , he is due $ 150,000 . Well , since then , we know that DIP financing was assure to the meat of $ 41 million from JP Morgan Chase Bank . If Diamond is sold or merged , gets paid $ 1,250,000 , 3.5 % of the note value up to $ 35,000,000 and 5 % over that , whatever is highest .
The court program from Diamond seeks favourable reception for this organisation , highlighting Raymond James ’s extensive experience in advising upset companies , both in and out of court of justice . A audience with the debitor for the coating to retain Raymond James is schedule for the 6th of February , with remonstrance due by the 3rd .
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