MickeyG

In October IBD bought ibill for $14.975 million in IBD stock. Ibill put up some sort of equity and assests in the value of $14.975 million.

In October 2004, in anticipation of the acquisition of iBill and to
collateralize our obligations to holders of our 10% notes and our series F
preferred stock aggregating $14.975 million, PHSL, Media Billing and iBill
granted such investors subordinated security interests totalling $14.975 million
in the iBill equity and assets.

Then In december they decided to cancel the deal but this is where i get confused

As consideration for the termination of the
contemplated transaction, including mutual releases, and for the security
interests in the assets and equity of iBill that continue to be retained by the
holders of these convertible securities.

So the shareholders of IBD now own the assests and equity ibill originally put up?

Media Billing has received consideration
valued at approximately $10.0 million. Such consideration consists of 20,000
shares of our non-voting Series D preferred stock convertible into a total of
20.0 million shares of our common stock and our $1.0 million 6% note payable to
Media Billing maturing on December 31, 2009. In addition, Media Billing agreed
to forgive $500,000 of indebtedness owed by our company.

They went from $14.975 million in October to $10 million in December? Where the $5 million go? And now the value of ibill is dependant on the stock price of IBD even though they aren't related in anyway?