Former iMedia’s Chapter 11 plan draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Dec. 14 – Legacy IMBDS, Inc.’s (formerly iMedia Brands, Inc.) Chapter 11 plan of liquidation drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to documents filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Vara said the court should deny confirmation because the plan includes inappropriate language regarding the obligation to properly report disbursements and to pay statutory fees to the U.S. trustee.

As previously reported, the official committee of unsecured creditors has also filed an objection to the plan. The group’s main issue is with the plan’s releases, which it called “fundamentally unfair” to creditors.

A combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Dec. 21.

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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