Quote:
Originally posted by Probono
InterCept and the former owners of iBill have amended the iBill asset purchase agreement to settle outstanding issues related to the $10.5 million remaining in escrow and to eliminate the contractual earnout provisions
Unless I am missreading this Intercept purchases the assets to Ibill, not Ibill. This could mean that Ibill liabilities might not be paid.
Does anyone know more about this? This could effect reserves held etc.
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No what this means is that when Intercept purchased Ibill, they placed $10.5 mil of the purchase price in Escrow to be sure that Ibill was going to perform as it said it would.
THe article says that the former owners are getting $2.5 mil and intercept are keeping the rest. This just means that obviously it isnt performing up to scratch and rather than wait till the end of the escrow period they have agreed to settle up now.
It doesnt affect ibills operations, as they have been run by intercept in since the purchase (infact intercept now have $8mil more than they did)