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Sex.com Grabs a Guinness as Creditors Settle Differences

Sex.com Grabs a Guinness as Creditors Settle Differences

CYBERSPACE—Sex.com, the world’s most infamous adult website, is now also officially its most expensive, according to the Guinness Book of World Records, which Tuesday crowned Sex.com ‘the most expensive internet address domain name.'

The details as provided by Guinness are simple (and well known). “The most expensive internet domain name was sold for $13 million (£8.2 million) by Escom LLC to Clover Holdings Ltd on 17 November 2010,” reads their website.

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Simultaneously, though probably coincidentally, an outstanding issue raised in bankruptcy court has been settled. Concerned creditor Nothin’ But Net had filed a motion last October in the Escom LLC bankruptcy preceding that accused Escom investor Mike Mann of “self-dealing."

“Mann,” the company claimed, “through a series of self-dealing transactions, essentially gave away Escom’s most valuable rights to iEntertainment (i.e., to himself) and then had Escom ‘buy back’ those rights from his wholly owned and controlled subsidiary, iEntertainment, in exchange for a $2.5 million secured note (the “iEntertainment Note”). The ultimate, and clearly intended result of this shell game, was to allow Mann to reap a disproportional recovery upon Escom’s sale of its assets, primarily at the expense of NBN, which the Debtor presently owes approximately $2,337,562.39, but which NBN will not recover if Mann’s self-dealing is sanctioned.”

In approving both the Escom bankruptcy and the sale of Sex.com, the court took the charges seriously enough to set aside approximately $2 million of the sale price tendered by St. Vincent-based Clover Holdings.

Feb. 7, however, Judge Geraldine Mund, following written and oral arguments, ruled against Nothin’ But Net, denying its motion to pursue state court causes of action. On Feb. 17, a stipulation was filed with the court in which Nothin’ But Net agreed to withdraw its objection, paving the way for “the payment of default interest, late fees or collection costs, including attorney’s fees, to the Secured Lenders in accordance with the terms of the Sale Approval Motion.” Nothin’ But Net also agreed not to file any more motions in the matter.

That ends the bankruptcy and most recent sale of Sex.com, but the story is undoubtedly far from over, especially considering the fact that the new owners of the most expensive domain in the world have yet to really do anything with it. But if the rumblings are true and the new owners also own other iconic domains, one can only hope that when Sex.com is finally developed, it fulfills the expectations that so many people have had for a domain that really truly should bring in far more than it cost to purchase.






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Tom Hymes

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