iBill’s Financial Woes Continue; Millions in Assets Seized

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.”

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

UPDATED: Supreme Court Rules Against Adult Industry in Pivotal Texas AV Case

The U.S. Supreme Court on Friday issued its decision in Free Speech Coalition v. Paxton, striking a blow against the online adult industry by ruling in support of Texas’ controversial age verification law, HB 1181.

North Carolina Passes Extreme Bill Targeting Adult Sites

The North Carolina state legislature this week ratified a bill that would impose new regulations that industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Supreme Court Ruling Due Friday in FSC v. Paxton AV Case

The U.S. Supreme Court will rule on Friday in Free Speech Coalition v. Paxton, the adult industry trade association's challenge to Texas’ controversial age verification law, HB 1181.

Ofcom: More Porn Providers Commit to Age Assurance Measures

A number of adult content providers operating in the U.K. have confirmed that they plan to introduce age checks in compliance with the Online Safety Act by the July 25 deadline, according to U.K. media regulator Ofcom.

Aylo Says It Will Comply With UK Age Assurance Requirements

Tech and media company Aylo, which owns various adult properties including Pornhub, YouPorn and Redtube, plans to introduce age assurance methods in the United Kingdom that satisfy government rules under the Online Safety Act, the company has announced.

Kyrgyzstan Parliament Approves Measure Outlawing Internet Porn

The Supreme Council of Kyrgyzstan on Wednesday passed legislation outlawing online adult content in the country.

Trial Set for Lawsuit by U Wisconsin Professor Fired Over Adult Content

A trial date of June 22, 2026, has been set for the civil lawsuit filed by veteran communications professor Joe Gow against the University of Wisconsin board of regents, which fired him for creating and appearing in adult content.

New UK Task Force Meets to Target Adult Content

The architect of an influential report that recommended banning adult content deemed “degrading, violent and misogynistic” has convened an “Independent Pornography Review task force” aimed at translating that report’s findings into action in the U.K.

11:11 Creations Launches Affiliate Program

11:11 Creations principal Alicia Silver has launched 11:11 Cash for creators and affiliates.

Pineapple Support, Pornhub to Host 'Self Love' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers to develop self-love.

Show More