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Judge Denies DOM Partners Motion to Dismiss Bankruptcy Case

from www.domainnamewire.com – 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.

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