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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Comments (6)

David J Castello

March 17th, 2010 at 6:51 pm

Not unexpected.

rob sequin

March 17th, 2010 at 8:54 pm

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

March 17th, 2010 at 10:18 pm

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.

Sex.com May Not Go to Auction Tomorrow, Involuntary Chapter 11 Filed | Domain Name News

March 17th, 2010 at 11:41 pm

[...] to Sedo and Mike Mann (as reported by Elliot Silver) the auction for Sex.com that is scheduled for tomorrow, may not take place after all. Both sources [...]

NetJohn

March 17th, 2010 at 11:50 pm

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

March 18th, 2010 at 8:46 am

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.