After a number of twists and turns, Alliance Entertainment (AENT) has been declared the winner bidder for the bulk of the assets of Diamond Comic Distributors.
In late March, Alliance placed what was viewed as the winning bid for the bankrupt distributor, but days before a court hearing was set to take place April 7 to move ahead with the sale, Diamond owners had a change of heart and backed a new, smaller joint bid by Canadian comics distributor Universal Distribution and pop culture manufacturer and licensor Ad Populum.
AENT appeared to gain the upper hand in a court filing made April 10, and in an order delivered April 11 in the U.S. Bankruptcy Court for the District of Maryland, AENT was officially named the winner of the auction. With the ruling, AENT has dropped its lawsuit that challenged the legality of Diamond’s decision to drop its offer in favor of Universal/Ad Populum.
The particulars of the asset purchase agreement are spelled out in Milton Griepp’s account of the decision at ICv2. Looking at the top line, AENT will pay $36.9 million for Alliance Game Distributors, less $6.8 million as well as other payments that will be paid directly to Alliance Game Distributors creditors whose contracts are being assigned.
The remaining assets, listed as Lot B (which Griepp assumes includes comic distribution plus other assets) will be purchased for $21 million, less cure amounts paid to creditors whose contracts are being assigned, and plus Incentive Amounts, based on the value of inventory sold and accounts receivable collected of the Lot B entities by the end of 2025.
At present, the deal is expected to receive final approval at an April 25 hearing.
