Andre Yoskowitz
19 Mar 2010 18:31
Sex.com, the domain name that was expected to go up for auction with a minimum $1 million bid, has seen that auction taken down by its creditors.
Escom LLC., the company that bought the domain name for $14 million just 4 years ago, has filed for bankruptcy protection, saying they are owed $10 million. The three creditors, Washington Technology Associates, iEntertainment Inc, and AccountingMatters.com noted that the auction "would have diminished the value of Escom's assets."
When a company files for an involuntary bankruptcy protection, lenders are temporary prevented from seizing assets.