Involuntary Chapter 11 Petition Filed Against Escom, LLC – Owner of the Sex.com Domain Name
I just received an email from regarding the Sex.com domain name, which had been scheduled to be auctioned tomorrow morning in New York City. According to the email sent to me, legal action has been filed, and the domain auction will apparently not take place as previously scheduled as a result. The news was released by Mike Mann via Facebook and Twitter (see screenshot below).
Here’s the news release that was sent to me:
Woodland Hills, California – Creditors of Escom, LLC (“Escom”) today filed an involuntary Chapter 11 bankruptcy petition against Escom in the United States Bankruptcy Court for the Central District of California (San Fernando Valley Division).
Petitioners took this action to protect their interests and to maximize value for all other creditors and equity holders. The filing will stay the public auction foreclosure proceedings previously scheduled for March 18, 2010, which petitioners believe would have diminished the value of Escom’s assets.
For more information, please contact:
Lawrence Morrison, Esq.
Meister Seelig & Fein LLP
(212) 655-3582
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About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.Reach out to Elliot: Twitter | Google + | Facebook | Email
David J Castello
Not unexpected.
rob sequin
Rick was asking if this domain is cursed.
http://www.ricksblog.com/my_weblog/2010/03/my-take-on-the-sexcom-auction-is-the-domain-really-cursed.html
domainsweb
Rick knows little about building a domain into a business. He just simply sells. Sex.com can be a mega 7 fig a year web business with the proper management team in place.
NetJohn
I first found out about the cancellation of the March 18th Sex.com auction via an E-Mail from Newsletter@SEDO.com approx. 2 1/2 hours ago.
It was a surprise first hearing of it from Sedo.
Charles Carreon
I was awakened today by a call from Bloomberg News announcing this. They were about to interview me about my book, The Sex.Com Chronicles, and wanted to give me the heads-up. At any rate, I logged into PACER and looked at the petition, which is very brief, filed on behalf of 3 creditors:
Washington Technology Associates of Potomac, MD: $6.6 Million
iEntertainment: $3.4 Million
Accounting Matters $7.4K
So the total debt from these three is a little over $10 Million.
And there’s a job for a domain name expert here, advising the Trustee.