iMedia Brands’ proposed sale draws objection from committee

By Sarah Lizee

Olympia, Wash., July 24 – iMedia Brands, Inc.’s proposed private asset sale to RNN-TV Licensing Co. LLC drew an objection from the official committee of unsecured creditors, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The committee takes issue with the “hyper-aggressive” timeline, which has the sale closing by Aug. 5, only 33 days after filing the sale motion.

The committee also said the debtor hasn’t justified the sale being private.

“Despite the debtors’ purportedly ‘fulsome’ prepetition marketing process described in their papers, the committee believes that the debtors’ prepetition sale process for substantially all of their assets actually was quite abbreviated – and the debtors’ post-petition sale process similarly was brief and likely provided only about 10 days for potentially interested parties to submit indications of interest,” the committee said in its objection.

“Making matters worse, because the debtors never sought approval of bidding procedures, potentially interested buyers were (and still are) left to wonder what would happen if somehow they were able to submit indications of interest, and then bids, on the debtors’ arbitrary timeline.”

The committee added that the lack of a transparent sale process has likely chilled bidding in the cases.

As previously reported, the purchase price under the agreement with RNN consists of $27.45 million in cash, plus interest and fees; a minimum cash shortfall; a credit of $7.5 million plus interest, fees and expenses owed to the buyer in its capacity as a lender under the DIP facility; and the assumed liabilities.

iMedia Brands is an interactive media company based in Eden Prairie, Minn. The company filed bankruptcy on June 28 under Chapter 11 case number 23-10852.

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