Creditors Ready to Receive First $10 Million from Sex.com Sale
Thursday, October 28th, 2010
Court approves deal, holds back some of proceeds.
The U.S. Bankruptcy Court in Central California has handed down an order (pdf) approving the sale of Sex.com to Clover Holdings Limited for $13 million.
Upon completion of the sale, Sex.com owner Escom will pay creditor Washington Technology Associates $6,312,593 and creditor DOM Partners $3,772,545. That comes out to $10,085,138. Domain broker Sedo also gets its cut of the pie, which presumably is somewhere shy of 10%. (The company typically charges 10%, yet the court sealed the agreement between Sedo and Escom. My guess is they conceded a bit on commission. Still, it’s probably around $1 million).
That leaves a couple million that will be held onto until an objection filed by Nuthin’ But Net is resolved.
This is just the latest chapter in the Sex.com saga. But I suspect most of the parties are content with the results given where things were just a few months ago. Congratulations to everyone involved, including Sedo.