Debtors behind on bills for the past year.
With Sex.com heading to the auction block, there’s a been a lot of talk about what went wrong with the current owner, Escom LLC. According to a Reuters article, Escom has been in default on its loan for over a year to lender DOM Partners.
“The loan was in default and DOM partners is foreclosing pursuant to its right under the security agreement,” DOM’s attorney Scott Matthews told Reuters.
The auction is still scheduled for March 18. Clearly, there are some disagreements amongst Escom LLC investors. There was early indication from one of the investors that there might be a lawsuit filed to block the auction, but a search of Federal District Court records did not turn up any such suit yet.
Auctioneer Maltz Auctions says there’s been significant interest in the domain name. Prospective bidders need to deposit a $1 million check prior to the auction. There will definitely be bids in excess of $1 million, but any winning bid is subject to DOM Partners’ acceptance.
Josh says
Over a year, wowser. Seems DOM is not that confident in this market to not retain the right to not sale….smart. What I am curious about is the loan amount, must be rather hefty which leads me to believe the investors don’t have that much invested.
Josh says
oops should of said TO RETAIN.
Andrew Allemann says
@ Josh – I presume DOM Partners is only a financial group and wouldn’t have an interested in actually owning the domain.
Josh says
True, or losing X,XXX,XXX’s 🙂
Andrew Allemann says
I suspect there was a large down payment.
Anunt says
I’ll take sex.com for $2M.
New Sex says
$7m is the amount Mike Mann defaulted on.
BuxUp says
I think, this one will enter into Guinness World Records Book as the most expensive domain name.
Rudy says
Is Michael Mann being honest here? I am still having a hard time figuring out this whole situation. Is he trying to rip people off? I just can’t tell.