IBill Changes .... Again

[tombarr]

Looks like the IBD stock purchase option for payback of past due payments from IBill is going to be pulled from the table. Now the only option is to take payback over an unidentified "extended" time period is the only option, as if the other one held any promise anyway.....

Not sure what this article below means to the future of IBill or if it even has any negative impact on them, but I am certain it will remove the stock payback option from the table.

http://biz.yahoo.com/bw/041215/155405_1.html

[collegeboyslive]

DEERFIELD BEACH, Fla.--(BUSINESS WIRE)--Dec. 15, 2004--Interactive Brand Development, Inc. (AMEX:IBD - News) announced today that its agreement to acquire Media Billing Company, LLC and its wholly owned subsidiary, Internet Billing Company LLC, from PHSL Worldwide Inc. will be mutually terminated by the parties.

This probally explains why ibill arn't paying out again... Payment was due on the 15th and has been "delayed" with more infor on friday.

[Lee]

Crazy stuff

iBill need to be sorting their shit out.. one way or the other.

Regards,

Lee

[tombarr]

From the IBill CMI today
------------------------------------------------------------------
US Payout 12/15/04
Please be advised that we are currently experiencing a delay with the US payout for check date 12/15/04. However, this payout is still on track to be processed and paid.

Another update regarding the US payout will be posted by Tuesday December 21, 2004
------------------------------------------------------------------

And the promissory notes are coming soon.....

And the money that we owe you is coming soon...........

And the reserve that FDMS is holding against our will is coming soon......

And the end of IBill is coming soon...... ?????

[collegeboyslive]

yeah the "More info tuesday" used to say "More info Friday" well i guess the "Info" is the new day

[Slade]

Anyone have any checks bounce on them yet?
Heard there was a bit of that going around.

[BDBionic]

OK so reserves are delayed and we all know why... but why new transactions?
Aren't peoples' credit cards and bank accounts being charged for this stuff?
And so it's not like that money's coming out of nowhere. It has to exist at some point. So why is it that it disappears once it gets in IBills hands, i.e. no longer exists to be paid out to the webmasters?
That's what I don't get.

[Lee]

iBill isnt charging peoples cards yet.

That was one scenario i was told about when this issue all started several months ago.

In effect, they are getting users to enter their card info but not charging them until such a time they have a solution in place.

At least that is how i understand it.

Regards,

Lee

[BDBionic]

Hrm... so if I'm Joe Schmoe surfer and I am a member of a website for a few odd months for which I'm never charged... then I cancel... then a couple months later charges start showing up but I'm no longer accessing the site... what do you think my first thought will be?

"Oh these must be the charges for that site I was a member of that they never charged me for and now they're just doing it a little late..."

or

"What the fuck is this? I'm not a member of that site anymore" *chargeback*

In the meantime, webmasters are held hostage by expending bandwith and resources on members they don't want to lose and want to attempt to hold on to in the hopes they'll one day get paid for them at some indefinite point down the line.

[collegeboyslive]

iBill isnt charging peoples cards yet.

oh trust me they are have have most definatly been charging peoples cards, even after they cancel. its been a nightmare trying to sort out the mess

[MWCren]

Instead of starting a new ibill thread, I thought I would just pile on this one and see what others think about the overall ibill picture.

When VISA got pissy about adult business last year and imposed the high risk VISA fees, ibill and a lot of other processors lost a ton of small site business. That started a chain of events that still hasn't bottomed out yet.

Ibill had been sold to Intercept, Intercept wanted out of the adult processing business, and by doing so, shot themselves in the foot. Ibill started losing even more processing business, and I'm thinking that Intercept raided the piggy bank and then dumped ibill.

So, you have a wounded processor with questionable cash flow models and clients jumping ship daily.

My guess is that First Data started looking at their financials with the Penthouse acquisition, and probably put them on notice that they needed to shore up the balance sheet or they would be condidered out of compliance and would then have their contract in jeopardy.

So they get cut off and scramble to find some alternative solutions, create some new processing models and search for a new buyer/investor/savior to give them the balance sheet they need to get funds released from First Data. In the meantime, people keep bailing and the cash flow dries up to a trickle.

The thing that is most interesting to me at the moment is what happens when ibill converts 15+ million in payables to promissary notes. Does that then allow them to move them off the balance sheet and either meet First Data's financial litmus test and allow release of the funds, or does that allow them to then file chapter 11 and write all of the promissary notes off? It will be very interesting to see how the promissary note is worded, and who is responsible for the debt.

I'm also wondering if the collapse of the sale to IBD will make things worse. It was my understanding that they would provide a substantial inflow if cash.

This nightmare isn't over yet, folks.

[collegeboyslive]

The thing that is most interesting to me at the moment is what happens when ibill converts 15+ million in payables to promissary notes. Does that then allow them to move them off the balance sheet and either meet First Data's financial litmus test and allow release of the funds,

I am questioning this part. surely the ONLY possible reason for first data to hold funds, is against massive chargebacks. if this is so its probally going to be for a set amount of time ( 6-12 months) and nothing ibill can do or say will change that. As First dada has killed the relationship they know they wont be getting in any more income from ibill so all they have to guard against chargebacks is the money on hand.