With the investment bank, the restructuring consultants and the managers of alliance game distributors
In a successful deposit on Monday evening, Alliance Entertainment continued for the second time Diamond comics distributors and related companies, and this time also continued the investment bank Raymond James, the restructuring consultants Getzler, Henrich & Associates LLC (with the chief of restructuring Robert Gorin Personally), and the distributors of Game Alliance, Co-Ceos Tyson and Dan Hirsch.
The trial alleys that the defendants intentionally concealed the fact that the distribution contract between the distributors of alliance games and the sorcerers of the coast ended until the end of the signing of the asset purchase agreement and approved by the court. The impact would be around 25% of the sales of alliance game distributors, or $ 39.88 million out of $ 161.3 million, according to the trial.
On April 17, eight days before the conclusion of the agreement, Diamond revealed to Alliance Entertainment that the agreement with the sorcerers of the coast would expire on April 30 and would not be renewed. The leaders of alliance game distributors and other diamond representatives argued that the termination of the agreement was a surprise.
The template was in place, according to the complaint, on April 21, when a video conference took place between Alliance Entertainment, Wizards of the Coast and the representatives of Diamond Comic Distributors, notably Tyson, Hirsch and Gorin. During this conference, the president of WOTC, John Hight, and the vice-president of world income and wizards play the Brian Trunk network explained that Wotc had decided in December 2024 to end the distribution agreement because sales to alliance game distributors had decreased by more than 8% in the previous four years, during a period of increase in sales. Extensions have been granted until April 30 to help the bankruptcy affair “… and to encourage debtors to grant the status of critical WOTC supplier,” alleged the file.
Efforts have been made to recover the agreement, according to the file. Alliance Entertainment made a proposal to the Wizards of the Coast with incentives to continue selling them after the sale, but they refused. There have also been discussions between Alliance Entertainment and Diamond as to a reduction in prices due to the variation in the value of the company, but they have not progressed and alliance Entertainment put an end to its asset purchase agreement last Thursday (see “Alliance ends“).
Alliance Entertainment claims in the file that it “remains ready, arranged and capable of closing the purchase of debtors’ assets to a reduced evaluation … to reflect the loss of income represented by the terminated WOTC distribution agreement.”
The complaint has five causes of action, including a breach of diamond companies; fraud, against diamond companies, restructuring consultants and Tyson and Hirsch; Help and encourage fraud, against Raymond James, restructuring consultants, and Tyson and Hirsch; false negligent declaration, against diamond companies, restructuring consultants and Tyson and Hirsch; And violation of the implicit alliance in good faith and fair negotiation, against diamond companies.
The complaint requests a judgment ordering the return on the deposit of $ 8.5 million in alliance Entertainment; that Raymond James, Getzler Henrich and Gorin disgorging all costs have paid them since the date of the petition; and that damage and costs are granted to an amount to be determined.
Meanwhile, even if the trustee decided to convert the bankruptcy of a reorganization of chapter 11 into liquidation of chapter 7 today, Diamond announced that he was selling another buyer (see “The trustee moves, as announced Diamond“), probably via the backup offer by Universal Distribution and AD Populum (see”Backup offer“).
Diamond had already tried to change the buyer after the auction, which led to the first trial by Alliance Entertainment (see “Alliance pursues“) And a rapid reversal and reintegrating the alliance as a buyer.
Not only does the situation in the bankruptcy court deteriorate, with more obstacles to a fence, delays, a major dispute and associated expenses and costs, but it also seems that the state of the company is decaying, with increasingly payable accounts in addition to the departure of key sellers.
In her complaint, Alliance Entertainment said that she had expressed her concerns about the state of the company at a meeting on April 23. “Aent also raised the fact that after the date of the petition, the accounts of paid debtors had increased by around $ 16 million and asked for the debtor plan for these increased accounts and how the debtors intended to pay them.” The meeting was without response to this question.