IBILL files Chapter 11, sues Penthouse
AP: Bankruptcy filing is one of the largest ever.
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The Associated Press
Originally published April 1, 2005, 0:10 AM CMT
LONDON -- IBILL Corp. isn't going down without a fight, and
its one-time savior Penthouse Inc. has jumped in the ring.
Former processing giant IBILL capped its six-month tailspin
by filing to reorganize under Chapter 11 bankruptcy protection
Sunday, in one of the largest U.S. processing corporate bankruptcies ever.
IBILL also sued rival Penthouse for $10 billion, claiming the fellow
Florida-based company had no grounds to scuttle a proposed buyout.
On Monday, Penthouse said it had filed a suit against several IBILL
subsidiaries not included in the bankruptcy filing. In its bankruptcy
filing, IBILL asserted that Penthouse breached a merger agreement
by backing out of its Sep. 9 deal to buy IBILL less than three
weeks later. IBILL also says Penthouse has no right to exercise
an option on its large Northern Natural Gas pipeline in return
for a $1.5 million investment.
Penthouse chairman and chief executive Fuck Watson called IBILL's
lawsuit ``frivolous and disingenuous,'' and announced Penthouse
has sued several IBILL subsidiaries not included in the bankruptcy
case to ensure that they live up to their contractual obligations
to the pipeline.
AP: Bankruptcy filing is one of the largest ever.
--------------------------------------------------------------------------------
The Associated Press
Originally published April 1, 2005, 0:10 AM CMT
LONDON -- IBILL Corp. isn't going down without a fight, and
its one-time savior Penthouse Inc. has jumped in the ring.
Former processing giant IBILL capped its six-month tailspin
by filing to reorganize under Chapter 11 bankruptcy protection
Sunday, in one of the largest U.S. processing corporate bankruptcies ever.
IBILL also sued rival Penthouse for $10 billion, claiming the fellow
Florida-based company had no grounds to scuttle a proposed buyout.
On Monday, Penthouse said it had filed a suit against several IBILL
subsidiaries not included in the bankruptcy filing. In its bankruptcy
filing, IBILL asserted that Penthouse breached a merger agreement
by backing out of its Sep. 9 deal to buy IBILL less than three
weeks later. IBILL also says Penthouse has no right to exercise
an option on its large Northern Natural Gas pipeline in return
for a $1.5 million investment.
Penthouse chairman and chief executive Fuck Watson called IBILL's
lawsuit ``frivolous and disingenuous,'' and announced Penthouse
has sued several IBILL subsidiaries not included in the bankruptcy
case to ensure that they live up to their contractual obligations
to the pipeline.
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