auction postponed due to bankruptcy claim

The domain name auction scheduled for Thursday 18 March has been postponed due to an Involuntary Chapter 11 petition, or involuntary bankruptcy, against the current holder of the domain.

The petition, published on the Domain Name Wire website, notes three claimants for a total of $10,092,118.68. The claimants are Washington Technology Associates who is claiming $6,607,803.66, iEntertainment, Inc. ($3,476,515.02) and, LLC ($7,800.00).

Petitioners took this action to protect their interests and to maximise value for all other creditors and equity holders, says a notice from lawyers Meister Seelig & Fein LLP. The filing will stay the public auction foreclosure proceedings previously scheduled for March 18, 2010, which petitioners believe would have diminished the value of Escom’s assets.