Home > News > iBill’s Financial Woes Continue; Millions in Assets Seized • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

iBill’s Financial Woes Continue; Millions in Assets Seized

iBill’s Financial Woes Continue; Millions in Assets Seized
Get XBIZ News
Sep 6, 2007 4:00 PM PDT    Text size: 
PARKLAND, Fla. — According to a quarterly report filed with the Securities and Exchange Commission, financial problems continue to mount for Interactive Brand Development (IBD), the owner and operator of the now-defunct online billing service iBill.

According to IBD’s SEC filing, a public auction was held on Aug. 13, after note holders foreclosed upon collateral securing notes they held. The securing notes were collateralized by IBD’s collection of cel art. According to IBD’s filing, the collection was valued at $6.5 million.

Two days after the auction, IBD received notice that CMI II, LLC, an affiliate of Castlerigg Master Investments Ltd. and an IBD stockholder, had been granted a judgment of $7 million against IBD.

In its SEC filing, IBD states that the company’s strategy “had been to maintain passive investments but to discontinue all operations associated with the adult entertainment industry,” and that it had “intended to seek business opportunities through a business combination with one or more private companies, which would have been promoted and restored to sustained profitability,” but said the recent setbacks have changed that plan.

“[I]n light of the recent judgment against it by CMI, the company has ceased operations,” IBD stated in the filing. “The company has had no material operations since June 2006.”

The SEC filing updated the status of debts owed to iBill’s adult webmaster clients, stating that the company as of June 30, had an “outstanding balance of $4.9 million and accrued unpaid interest of $288,000 on client notes.”

Over the last several years, IBD has cut several deals in an attempt to revive the company and to reestablish its financial viability, including the outsourcing of payment processing operations to Etelgate in March 2006.

The deal with Etelgate, however, broke down due to a “dispute concerning processing volume,” according to IBD’s SEC filing, a dispute that arose just a few months after the deal was struck. By December 2006, the deal with Etelgate had been entirely abandoned, and iBill’s operations were discontinued.

In December 2006, IBD announced its plan to exit the credit card processing space and discontinue the operations of iBill. According to the company’s SEC filing, IBD “intended to sell [iBill] along with any of its associated intellectual property rights, the customer database and the assumption of all remaining outstanding debt obligations,” adding that “[t]o date, no such sale has materialized.”

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

OPINIONS & VIEWS

Paysite Meetup: Catching Lightning in a Bottle

We just completed the first XBIZ.net Paysite Meetup in Prague. We caught lightning in a bottle. I first heard that expression from a friend who works in TV. He started in TV in the 1960s selling advertising,... More »

Why a Traffic Network Killed a Popular Offering

Change begets change. Nothing propagates so fast. If a man habituated to a narrow circle of cares and pleasures, out of which he seldom travels, step beyond it, though for never so brief a space, his departure... More »

Luring Cam Users With the Right Ad Format

The live cam marketplace is highly competitive filled with big-, medium- and small-sized players. So how do you stand out from the crowd to attract new users or persuade users to come back and spend their... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.

UPCOMING EVENTS

Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport

QWEBEC Expo

Aug 03 - Aug 06
Montreal, Quebec

XBIZ Berlin 2017

Sep 11 - Sep 14
Berlin, Germany
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!