In a recent filing in the United States Bankruptcy Court, Diamond Comic Distributors has objected to a motion by comic book publisher Dynamite Entertainment, which sought to define certain moneys owed by Diamond, to wit $509,114.21, as an administrative claim. And thus more easily and quickly payable and granted priority over other claims in the bankruptcy process, as these debts by Diamond to Dynamite were made after bankruptcy protection had been launched.
In the response, Diamond acknowledges that Dynamite delivered goods post-petition and that some payment is owed. However, they dispute the $509,114.21 claim amount, arguing it is overstated and fails to account for setoff rights, which allow a debtor to reduce a creditor's claim by offsetting it against amounts the creditor owes the debtor.
Dynamite's motion also seeks to include attorneys' fees and interest as part of its administrative expense claim, citing precedent. But Diamond argues that precedent does not apply, and that the bankruptcy code allows administrative expense status only for costs that provide a "concrete benefit" to the debtor's estate. The Debtors contend that Dynamite's attorneys' fees and interest do not meet this standard, as they do not directly benefit the estate.
Dynamite also requested immediate payment of its claim and Diamond argues that even if Dynamite is entitled to an administrative expense, immediate payment is not justified. And that courts typically require claimants to demonstrate a specific hardship or necessity to justify immediate payment, rather than simply pointing to the debtor's ability to pay. And that Dynamite has not shown any specific harm or prejudice that would warrant immediate payment. Though I am guessing, from everything that Dynamite has already been through, that won't be hard to prove if asked. And it will be even tougher to deal with given how loyal and supportive Dynamite has been to Diamond through all this.
previewsworld.com
