YNOT – A bankruptcy judge has ruled Sex.com’s pending $13 million sale may proceed … but owner Escom LLC won’t see all of the proceeds until the court can untangle accusations of self-dealing a creditor has levied against one of the company’s investors.
The judge ordered about $3 million to be held back pending resolution of a complaint filed by Nothin’ But Net, which court documents indicate Escom owes $2,337,562.39. NBN filed a motion Oct. 17 claiming investor Mike Mann, using a series of shell corporations he owns, illegally tied up $2.5 million worth of Escom’s assets in such a way that he would reap “disproportional recovery” at the expense of other creditors.
Creditors Washington Technology Associates and DOM Partners were to be paid their $6,312,593.14 and $3,772,545.77, respectively, within three business days of the date Sex.com’s sale closes, the judge ruled. Washington Technology Associates, owned by Mann, is one of three companies that forced Escom into involuntary bankruptcy in March.
Sedo will receive a sales commission from the $3 million in escrow.
Exactly who owns St. Vincent-based Clover Holdings Limited, winner of Sex.com in a private auction overseen by domain broker Sedo, remains a mystery.
