Settlement paves way for Sex.com domain name sale.
The managers of Escom, LLC, which owns the Sex.com domain name, have agreed to enter into an agreement with Sedo to sell the domain name. Terms of the brokerage agreement are confidential.
The agreement to retain Sedo to sell the domain name comes after a settlement between a number of the creditors to Escom. Originally, creditor DOM Partners pushed the Sex.com domain name into foreclosure and scheduled an auction to sell the domain name. The day before the auction was to take place, three entities controlled by Mike Mann made an involuntary bankruptcy filing against Escom to halt the auction.
The parties battled back in forth in bankruptcy court, but have reached a settlement. As part of the settlement, the parties agreed that “a sale of the Debtor’s assets, including its Internet domain name www.Sex.com (the “Domain Name”), as expeditiously as possible…is in the best interests of the Debtor, the estate, and its creditors.”
DOM Partners had originally opposed retaining Sedo to sell the domain name because it felt that its fees were too high. Sedo had been in talks with some of Escom’s investors previously to sell the domain, and Sedo filed a statement in the case suggesting that it would be the better company to sell the domain name than DOM’s original auctioneer.
The parties have asked the court to approve its settlement agreement.