Domain investor is the largest creditor.
Earth.com has filed for bankruptcy in Colorado, leaving domain investor Innovation HQ waiting for a resolution on a long-term domain deal.
According to the filing, Earth.com owes Innovation HQ, Inc $5 million for a “rent to own domain name sales agreement.”
The company has been operating at earth.com for many years, so it’s not clear if the $5 million number was the total amount agreed to in the rent-to-own agreement.
Most rent-to-own agreements use an escrow agent or third party that immediately reverts control of the domain if the lessee is delinquent on payments. Alternatively, the lessor holds onto the domain itself, only changing nameservers at the lessee’s request.
Innovation HQ acquired the domain for $800,000 in 2005.
Business Den, a publication in Colorado, notes that the owner has been sued multiple times.
According to the bankruptcy filing (pdf), Innovation HQ is the biggest creditor by far. ContentIQ Marketing is the second biggest at just $230,000.