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Judge Denies DOM Partners Motion to Dismiss Bankruptcy Case

April 21, 2010dom partners, Domaining, Domainnamewire, escom, Mike Mann, sex.com, UncategorizedComments Off on Judge Denies DOM Partners Motion to Dismiss Bankruptcy Case

Bankruptcy case to proceed for now.

A judge assigned to the bankruptcy case of Sex.com owner Escom, LLC has denied creditor and shareholder DOM Partners’ request to dismiss the case.

Three companies run by Mike Mann filed an involuntary bankruptcy petition against Escom the day before Sex.com was to be offered in a high profile auction in New York City. Mann argued that the best way to realize the maximum value from the sale of Sex.com was to hold an orderly bankruptcy auction using a skilled domain auctioneer.

Escom, LLC filed a formal response to the bankruptcy filing, saying that it agreed with the bankruptcy proceedings. That should come as no surprise to DOM Partners, which claims that Escom’s CEO reports to Mike Mann and that Mann effectively operates Escom.

The upshot of a bankruptcy auction is that the domain name could be auctioned free of all liens. But given the history of Sex.com, I’m betting we haven’t seen the last twist in this case.


© DomainNameWire.com 2009.

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Related posts:

  1. DOM Partners Fires Back at Mike Mann in Sex.com Case
  2. Judge Nixes Moniker’s Motion to Dismiss, Repercussions for Domain Registrars
  3. Mike Mann Claims Sex.com Over $10 Million in Debt

DOM Partners Fires Back at Mike Mann in Sex.com Case

April 13, 2010dom partners, Domaining, Domainnamewire, escom, Mike Mann, Policy & Law, sedo, sex.comComments Off on DOM Partners Fires Back at Mike Mann in Sex.com Case

Creditor to Sex.com says Mike Mann proves its point.

Sex.comDOM Partners, a creditor and equity investor in Sex.com owner Escom, LLC, has filed a reply (pdf) to Mike Mann’s opposition to DOM’s motion to dismiss bankruptcy proceedings against Escom.

In the reply, DOM Partners says that Mann’s opposition and declaration proves that he filed the bankruptcy case in bad faith to prevent a planned foreclosure auction of the Sex.com domain name.

Petitioners acknowledge crucial facts supporting DOM’s Motion for stay relief on the basis of bad faith. For example, they admit that Petitioners are controlled by Mr. Mann, that they are insiders of ESCOM, that they filed the Petition because ESCOM could not file a voluntary petition, that the filing was made solely to stay DOM’s UCC sale of the Domain Name, and that the Domain Name must be liquidated
(although they claim fhat it must be sold under the supervision of the Bankruptcy Court).

In a separate declaration (pdf), DOM Partners counsel Robert Seaman responds to Mann’s suggestion that Sedo should sell the domain name rather than New York auctioneer David R. Maltz & Co., Inc.

Although it is not necessary or appropriate to defend the commercial reasonableness of the UCC auction in this forum, I note that there were several reasons why DOM did not retain Sedo as the auctioneer for the UCC foreclosure sale. One reason is that David R. Maltz & Co., Inc. (“Maltz”), a well known auctioneer in New York, appeals to a wider pool of bidders. The “players” in the domain name industry to which Sedo caters were well aware of the auction as soon as DOM’s Notice of Foreclosure Sale was broadcast on the Internet and domain name industry message boards. Maltz’s marketing efforts led to widespread interest across all business sectors and a global awareness of the auction. Another reason is that Sedo sought a commission that was excessive given the expected amount of services involved. Payment of the additional fee for less effective marketing would have reduced the amount that DOM — and the other creditors and equity owners — would have realized from the auction.

Escom, LLC has yet to formally file a response to the bankruptcy proceedings.


© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

  1. Mike Mann Files Objection, Says Sedo Should Auction off Sex.com
  2. Mike Mann Claims Sex.com Over $10 Million in Debt
  3. Mike Mann Speaks His Mind about Sex.com