Sex.com Domain Name In Default for Over a Year

Tuesday, March 9th, 2010

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.

Further Reading:

  1. Breaking: Sedo to Sell Sex.com Domain Name
  2. Judge Denies DOM Partners Motion to Dismiss Bankruptcy Case
  3. New Developments in Sex.com Case

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9 Comments » - Posted in Domain Sales by

Comments

  1. Josh
    March 9th, 2010 | 10:36 am

    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.

  2. Josh
    March 9th, 2010 | 10:36 am

    oops should of said TO RETAIN.

  3. Andrew Allemann
    March 9th, 2010 | 10:52 am

    @ Josh – I presume DOM Partners is only a financial group and wouldn’t have an interested in actually owning the domain.

  4. Josh
    March 9th, 2010 | 11:11 am

    True, or losing X,XXX,XXX’s :)

  5. Andrew Allemann
    March 9th, 2010 | 11:14 am

    I suspect there was a large down payment.

  6. Anunt
    March 9th, 2010 | 11:39 am

    I’ll take sex.com for $2M.

  7. New Sex
    March 9th, 2010 | 6:53 pm

    $7m is the amount Mike Mann defaulted on.

  8. BuxUp
    March 11th, 2010 | 5:47 am

    I think, this one will enter into Guinness World Records Book as the most expensive domain name.

  9. Rudy
    March 30th, 2010 | 6:52 pm

    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.

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