Companies claim Sex.com owner in debt over $10 million.
Three creditors filed an involuntary bankruptcy petition against Sex.com owner Escom, LLC today in U.S. Bankruptcy Court, Central District of California.
The petition, obtained by Domain Name Wire (pdf), lists three creditors, all of which appear to have investor and BuyDomains founder Mike Mann as the chairman. All three entities have the same address in Potamac, Maryland:
Washington Technology Associates, claiming $6,607,803.66
iEntertainment, Inc. claiming $3,476,515.02
AccountingMatters.com, LLC $7,800.00
The total claims are $10,092,118.68
This should mean that Thursday’s planned auction of Sex.com will be postponed.
In earlier comments to Domain Name Wire, Mann said “I am merely an investor who got completely railroaded by other investors with big guns, bad practices, and bad attitudes.”
Mann had said he was going to take legal action to prevent the auction, but this was certainly last minute.
As the case moves forward, more details about what went wrong will likely become public.