Diamond Book Distributors has informed its publisher clients that it is resuming shipments of books and games to Borders as of this week. Shipments had been halted since early this year due to payment issues (see “Diamond Book Puts Borders on Hold”). Diamond is owed $3.9 million, according to Border’s Chapter 11 filing (see “Borders Files Chapter 11”). Diamond told its publisher clients that it is working with the chain on titles and quantities to ship. 

 

Borders is not shipping any returns for pre-petition books to Diamond. During the Chapter 11 proceedings, Borders is not reducing its trade liabilities, but can disperse moneys to get new product into its stores.