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Former iMedia Brands gets interim approval of disclosure statement
By Sarah Lizee
Olympia, Wash., Nov. 2 – Legacy IMBDS, Inc., formerly known as iMedia Brands, Inc., received interim approval of the disclosure statement for its Chapter 11 plan of liquidation, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.
A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Dec. 21.
Liquidating trust assets include $1.5 million in cash, retained causes of action, rights under the purchase agreement, and remaining assets as of the effective date.
Under the plan, other priority claims and other secured tax claims will be paid in full.
Holders of unsecured claims are expected to receive a 0% to 2% recovery via a beneficial interest in the liquidating trust, which will entitle holders to a pro rata share of unsecured claim distribution proceeds, if any.
Intercompany claims and intercompany interests will be reinstated or canceled, released and extinguished with no distribution.
Holders of interests and section 510(b) claims will receive no distribution.
As previously reported, iMedia Brands closed the sale of its assets to IV Media, LLC in August.
The buyer, which is owned by Manoj Bhargava, the founder of 5-Hour Energy, was named the winning bidder for iMedia’s assets following an auction.
The purchase price under the asset purchase agreement was $39.95 million, a minimum cash shortfall, and assumed liabilities.
The buyer had agreed to leave behind the $1.5 million in cash for the liquidating trust to fund the winddown of the estates.
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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