Diamond Comic Distributors, currently undergoing Chapter 11 bankruptcy proceedings, has received approval from the U.S. Bankruptcy Court in Maryland to increase its debtor-in-possession financing agreement with JP Morgan Chase according to reporting at ICv2. The amended agreement raises their available loan amount from $41 million to $44.7 million, adding an additional $3.7 million in new financing. This adjustment increases the funds available for inventory purchases to $12.1 million, up from the previously approved $8.4 million. The creditors’ committee reviewed and approved this increase without objections, ensuring Diamond can maintain operations while preparing for the sale of its assets.
The court order was issued on March 19, coinciding with the first deadline for bids on Diamond’s assets. Universal Distribution has submitted a stalking horse bid of $39 million for Alliance Game Distributors and Diamond UK, setting the baseline for other bidders. Competing offers must exceed Universal’s bid with a bid of at least $40,865,000, a sum which includes a 3% break-up fee, capped expenses, and an additional $500,000. If Universal’s bid ends up succeeding, it plans to acquire Diamond UK by paying for the assets, less liabilities (money owed), less £200,000..
A live auction is scheduled for March 24. Diamond’s restructuring consultant noted increased interest in its assets from well-funded buyers outside the comics and games industries. An optimistic take is that these potential buyers aee Diamond’s assets as strategically valuable despite its current financial challenges.
Diamond filed for bankruptcy in January 2025 due to significant financial difficulties, including debts of $32.6 million to JP Morgan Chase. The company has been a cornerstone of the comic book industry for decades but faced mounting operational struggles during the COVID-19 pandemic, leading to lost partnerships with major publishers due to delivery issues. Amid these challenges, Diamond is actively seeking buyers for its divisions, including Alliance Game Distributors, Diamond UK, and other business units like Collectible Grading Authority and Diamond Select Toys.
While the bankruptcy process has disrupted the comics distribution market, there still remains some cautious optimism among industry stakeholders that the direct market will adapt and survive after this restructuring effort. Hopefully it will emerge stronger and better than ever.
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English (US) · 