Former iMedia’s Chapter 11 plan of liquidation effective as of April 1

By Sarah Lizee

Olympia, Wash., April 2 – Legacy IMBDS, Inc., formerly known as iMedia Brands, Inc., had its Chapter 11 plan of liquidation go into effect on Monday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Feb. 21, as previously reported.

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.

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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