From the Press Release;
"We're pleased to offer what many would consider an even more significant instrument, the 1953 Martin D-18 acoustic guitar that Cobain purchased while on tour shortly before the 1991 release of the seminal Nevermind. This 1953 Martin D-18 acoustic guitar was played regularly by him before being gifted to indie-folk rock musician and then-girlfriend Mary Lou Lord during their brief relationship. Cobain's first Martin D-18, he loved it so much that this became his favorite brand of acoustic. Mary Lou Lord played the guitar regularly (with the guitar strung right-handed - Cobain was a lefty) during her career, on tour and in the studio, and often shared the guitar with her pals Elliott Smith and Shawn Colvin."
The guitar apparently did not meet the auction reserve.
Correction. It sold for $29,875
Interesting observation; on the photo of Kurt playing the guitar the strings are strung up for a right handed player. Was this really Kurt's? Or was it Mary Lou's and Kurt happened to strum it? The only Martin mentioned on kurtsequiptment.com is the Unplugged D18E.
Here is a short video clip of the guitar on display at the Dallas Guitar Convention 2007