Former iMedia gets confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., Feb. 22 – Legacy IMBDS, Inc., formerly known as iMedia Brands, Inc., received confirmation of its Chapter 11 plan of liquidation, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Counsel for the company said at the confirmation hearing that objections to the plan had been resolved. The U.S. trustee overseeing the case and the official committee of unsecured creditors were among those who had filed objections.

The plan provides for the liquidation of the debtors’ remaining assets following the closing of the sale transaction with IV Media, LLC, the winding down of remaining affairs, and dissolution through a liquidating trust.

As previously reported, the company received approval to sell its assets to IV Media for a purchase price that includes $39.95 million, a minimum cash shortfall, and assumed liabilities.

Under the plan, secured tax claims, other secured claims and other priority claims are unimpaired.

Unsecured claimholders are expected to receive a recovery of up to 2%. Each holder will receive a beneficial interest in the liquidating trust.

Intercompany claims and intercompany interests will be reinstated, or canceled, released and extinguished.

Section 510(b) claims and interests will be canceled with no distribution.

iMedia Brands is an interactive media company based in Eden Prairie, Minn. The company filed bankruptcy on June 28, 2023 under Chapter 11 case number 23-10852.

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