Actually, I got the impression that they put alot of these special charges against the "old ibill" as it limited the payouts to previous owners...
Quote:
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As noted above we acquired the iBill assets from Internet Billing Company, Ltd. (“Old iBill”) in April 2002. On February 11, 2003, we amended the iBill asset purchase agreement to settle outstanding issues related to the $10.5 million remaining in the purchase price escrow that secured representations and warranties of the former owners, including those related to potential Visa and MasterCard fines for excessive charge-backs. Under the amendment, we received $8.0 million from the escrow, and the former owners of Old iBill received the $2.5 million then remaining in the escrow. In the amendment, the former owners also agreed to eliminate the earnout provisions in the purchase agreement. We agreed to indemnify the former owners for any claims resulting from processing-related activities that occurred before April 8, 2002.
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Sounds to me like the new company took more out of the escrow than expected to cover these "expenses", which left less cash for the "old ibill".
Alex
04-02-2003
Hybrid Mode
