The following was just released.
Involuntary Chapter 11 Petition Filed Against Escom, LLC – Owner of the Sex.com Domain Name
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
lfm@msf-law.com
so what does this mean exactly?
That the auction is temporarily stopped. I assume the lawyers for both sides will now have to go into court and present arguments. The court will then decide what the next step will be.
escom is trying to get the name back?
it has to do with the way the domain was to be sold. One of the major creditors did not feel that the auction method tomorrow was the best way to sell the domain for it’s maximum value.
That makes sense. It wasnt even marketed to the online adult industry at all. Yes it got cnn coverage but what does that mean. What about all the companies overseas?