Alpha Red Has Assets to Be Liquidated, Trustee Says

HOUSTON — A federal bankruptcy trustee says there will be funds available for disbursement in the Chapter 7 liquidation of equipment and other assets owned by defunct web-hosting provider Alpha Red.

The trustee, Douglas Brickley, says creditors have until Sept. 14 to file a claim with the U.S. Bankruptcy Court in Houston.

Alpha Red, which hosted numerous adult sites on its servers, left its clients in the dark after it filed Chapter 11 about two years ago, listing about $10 million in debt. Some in the online adult biz said Alpha Red was seeking business right up to the filing.

The bankruptcy filing was later switched to Chapter 7 and subsequently its CEO and founder, James McCreary, was arrested by the U.S. Marshal's Service after he failed to appear at bankruptcy proceedings in January. McCreary was found in contempt.

Alpha Red, according to documents obtained by XBIZ, had gross revenue of $8.2 million in 2008, $9.8 million in 2007 and $5.5 million in 2006.

The company is primarily owned by McCreary, who holds an 82 percent share, with Netherlands-based V.S.N. Produktie B.V. holding an 18 percent share.

Much of Alpha Red's assets that could be liquidated include about two dozen servers, including one that has a potential value of $415,000. The trustee noted that company assets of "unknown value" disappeared in late 2008 at both of Alpha Red's offices in Dallas and Houston.

A statement filed with the court also shows large transfers of company cash in late 2008 by McCreary to a Hong Kong bank account with McCreary listed as payee. Between Sept. 25, 2008, and Oct. 7, 2008, numerous wire transfers to his Hong Kong bank account totaled $2.8 million.

In December 2008, Alpha Red filed for bankruptcy.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Arcom to Expand AV Enforcement to Smaller Adult Sites

The president of French media regulator Arcom revealed on Thursday that the agency plans to escalate its enforcement of age verification rules to include smaller adult sites, starting in late 2025 or early 2026.

AEBN Publishes Report on MILF, Cougar Trends

AEBN has published a report on MILF and Cougar categories from its straight theaters.

Pornhub to Shut Down Access in Arizona Over Age Verification

Aylo will geoblock Pornhub across Arizona starting Sept. 26, when the state’s age verification law, HB 2112, goes into effect.

Flirtback Launches Zcash Crypto Payment Solution

Creator platform Flirtback has launched its Zcash (ZEC) crypto payment solution.

Vixen Media Group Appoints Samuel Spencer as President, COO

Vixen Media Group (VMG) has named industry veteran Samuel Spencer as its new president and chief operating officer.

French Telecoms Mogul Ignites AV Firestorm With Free VPN, Sarcastic Tweet

French billionaire Xavier Niel, founder of telecommunications giant Iliad, sparked a heated debate this week when he appeared to admit that the company's Free Mobile wireless carrier integrated no-cost VPN into its service specifically to circumvent age verification restrictions on adult content.

UPDATED: Michigan Legislators Propose Online Porn Ban

Michigan lawmakers have introduced a bill that would make it illegal to distribute pornography via the internet in the state.

Taliban Restricts Access to Adult Content by Shutting Down Internet

The Taliban has shut down internet access across a large portion of Afghanistan in a move to prevent what it deems "immoral activities."

Go.cam Adds Video Spoofing Protection for AV

Go.cam has announced that its verification solution now features security against video spoofing.

SexLikeReal Releases 'VR Self-Care' Guide

SexLikeReal (SLR) has published a blog post spotlighting “VR Self-Care.”

Show More