JEFFREY BARON’S EMERGENCY MOTION FOR STAY PENDING APPEAL Page -
that are sixteen (16) times higher than the Stalking Horse Bid. Exhibit C, Declaration of Jay
Finnan. Moreover, there is no principled reason that the entire portfolio has to be sold to satisfy
the Estate’s estimated liabilities of $2.2 million. The Receiver’s failure to get a valuation is
explained quite simply---he did not want a valuation of the fair market value of the domain
names because his direction from the Court was to close the receivership by the end of the year.
Exhibit D, P. Vogel Deposition. Even assuming that one gives the Receiver the benefit of the
doubt, failure to follow one’s own procedures to value the domain names before selling them
casts serious doubt on selling an asset in a commercially reasonable way at a fair market value.
16. Irreparable injury to Jeffrey Baron. Mr. Baron has a beneficial interest in the
Novo Point and Quantec portfolios and, under the Plan, will receive the proceeds of any sale after
payment to creditors. As such, he is directly impacted by any sale of the non-debtor portfolios.
The likelihood of achieving anything close to fair market value for the portfolios is remote, and
would likely result in a loss measured in the tens of millions.
17.As demonstrated in the record of hearing before the Court, and Jeffrey Baron’s
objections to the Chapter 11 Plan and Motion to Strike or to Continue Auction (Document No.
895, filed under seal), the $4.1 million Stalking bid grossly understates the value of the Novo
Point and Quantec portfolios and that the value of the domain names will not decline over the
short term period of six months or a year. Exhibit C, Declaration of Jay Finnan. Should the
Trustee sell the domain names and it is later determined, as Mr. Baron alleges, that the Trustee
cannot sell the property of a non-debtor, or that the auction procedures limited and/or chilled the
number of qualified bidders able to participate in the auction, and/or that the conduct of the
Stalking Horse bidder interfered and compromised the judicial process leading up to the auction,
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