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Is Diamond to be liquidated over cheapjack paperwork ? US homage enroll paperwork for Chapter 7 bankruptcy as Diamond break down to file away .
Article Summary
The US Bankruptcy courts of Baltimore have egress new paperwork for Diamond Comic Distributors to move it from Chapter 11 bankruptcy to Chapter 7 failure . In layman ’s terms , that think of moving from attempt to de jure reorganise Diamond Comics to be an ongoing company again to liquidating its plus and closing it down for good .
The official reason given in the effectual filing is that Diamond has n’t file their paperwork , specifically their Monthly Reports , during the Chapter 11 procedure . The papers state that " Chapter 11 debtors - in - possession are require to file Monthly Operating Reports with the judicature and the U.S. Trustee on a monthly basis . The failure to file Monthly Operating composition constitutes ‘cause ' … for the rebirth or pink slip of this case " .
They cite another subject stating that " Monthly operating reports " are much more than interfering work bring down upon a Chapter 11 debitor for no other reasonableness than to command it to do something . They are " the lifeblood " of Chapter 11 , enabling creditors to keep chit on the debitor ’s post - petition operations . Failure to file them — and to file them timely — is a serious breach of the debtor ’s fiduciary obligations and " undermines the Chapter 11 process . " It is well established , accordingly , that a debitor ’s bankruptcy to submit monthly operating report card is " cause " to convert the typeface or dismiss it . " That " refusal or inability to provide financial disclosure [ through monthly control reports ] vocalise the death knell of a chapter 11 case " And that Diamond has not charge any Monthly engage Reports since commencing this case . Monthly Operating Reports for January , February and March are now outstanding and overdue .
A earshot to convert Diamond ’s Chapter 11 into Chapter 7 bankruptcy at the U.S. Bankruptcy Court in Baltimore , will be held on the 27th of May 2025 , unless Diamond Comic Distributors can screen out themselves out by then . If no objection is file away by any political party within two week , the ordering will be yield without a hearing . Can I advise that sure the great unwashed commence write immediately ? And maybe Diamond should fill up in their bloody monthly reports sharpish ?
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