Court Approves Escom, Sedo Agreement

WOODLAND HILLS, Calif. — A bankruptcy court has approved the proposed settlement between the managers of Escom and Sedo to sell the Sex.com domain name.

The order paves the way for the sale of Sex.com by Sedo. Escom will now operate as a debtor in possession pursuant to two sections of the Bankruptcy Code.

In a new development, another interested party and creditor, Nothin’ But Net, which has been quite during the case until now, stepped in to file an objection.

According to court papers, the parties in the case, which include DOM partners, Escom, Washington Technology Associates, AccountingMatters.com and iEntertainment, filed a stipulation relating to the proposed sale of certain Escom assets subject to the approval of the court. In the same filing, the parties lodged a proposed order approving the stipulation.

After reading and considering the filing, the court approved the stipulation.

The papers say, “Nothin’ But Net has communicated to the parties its desire to expressly reserve creditor’s rights with respect to claims arising under the notes and of any claims against the debtor.”

Nothin’ But Net says the parties failed to accommodate the changes requested and filed an opposition to the order approving the stipulation.

Nothin’ But Net wants the court to add the following, “The stipulation is approved, provided, however, that the stipulation shall not waive the rights of any creditor or other interested party to object to the allowance, amount, status or priority of claims evidence by the notes set forth in section 4 of the stipulation or to assert any claims against the debtor and all such rights are expressly reserved.”

Calls to Nothin’ But Net attorneys went unreturned by post time, but according to DomainNameWire, Nothin’ But Net are working with creditors DOM Partners and Washington Technology Associates to resolve their differences.

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