Email List

CBS12 on FACEBOOKCBS12 RADARROAD TRIPPINCBS NEWS LIVESUN SENTINELCRIME TRACKER
WPEC-TV CBS12 News :: News - Treasure Coast News - UPDATED: Digital Domain declares bankruptcy

UPDATED: Digital Domain declares bankruptcy

(Reuters / CBS12) - Digital Domain Media Group Inc, which won Academy Awards for visual effects in films including "Titanic," filed for Chapter 11 bankruptcy protection on Tuesday, days after it warned that it may need more cash to stay afloat.

The company is planning to sell its operation and assets to Searchlight Capital Partners for $15 million, which will continue operations.  The sale will be subject to a public auction to see if there are higher bidders. Any auction and sale must be approved with the Court.

The company, whose founders include "Titanic" director James Cameron, listed total debts of $214.9 million and total assets of $205.0 million, court documents showed.

The company laid off more than 200 workers and shut down its Port St. Lucie studio on Friday after defaulting on the terms of several loans earlier last week.

Digital Domain has worked on more than 90 major motion pictures, including "Pirates of the Caribbean: At World's End," "Transformers," "The Curious Case of Benjamin Button," "Star Trek" and "X-Men: First Class".

The company, which specializes in creating realistic computer-generated human characters, said in June it planned to produce virtual Elvis Presley likenesses across various platforms, including live shows, TV and online.

Digital Domain, which raised $42 million in an initial public offering in November, said last month it was looking at strategic alternatives and had hired Wells Fargo Securities LLC as financial adviser.

The company said it was in breach of conditions on some borrowing.

"As a result of negative working capital, the company failed to meet the liquidity covenants and was running out of cash," Chief Restructuring Officer Michael Katzenstein said in court documents.

The company continues to operate studios in California and Vancouver and a training school in West Palm Beach.

Chairman and Chief Executive John Textor, who is also the company's biggest shareholder, resigned last week, saying he was in "profound disagreement" with the decision to close the Florida studio.

As of Aug. 28, Textor controlled about a quarter of Digital Domain, according to Thomson Reuters data.

Florida Gov. Rick Scott has ordered a probe into the state's decision to award millions of dollars in economic incentives to the company to help bring it to Port St. Lucie, the Associated Press reported on Monday.

The company listed Reliance Mediaworks Ltd, Legendary Pictures and Bell Technologies Inc as among its largest unsecured creditors.

Digital Domain shares closed at 55.4 cents on Monday, giving it a market value of $24 million, down from about $400 million on May 1 when the stock traded as high as $9.16.

The Case is In re: Digital Domain Media Group Inc, Case No. 12-12568, U.S. Bankruptcy Court, District of Delaware.UPDATED: Digital Domain declares bankruptcy

Tuesday, September 11 2012, 08:58 AM EDT

Treasure Coast News Stories

Advertise with us!

 
  • WPEC :: News - Road Trippin

    Road Trippin

    Come Road Trippin' with us!
  • WPEC :: News - The Greek's Trifecta

    The Greek's Trifecta

    Prognostication, travel and women are The Greek's strong suits as well as his vices. Listen as The Greek breaks down the lines on the biggest games of the week for CBS12.
  • WPEC :: News - In Your Corner

    In Your Corner

    CBS12 News has Florida Gov. Rick Scott "In Your Corner," answering your questions. Ask a question in the Facebook commenting window below or email it to newstips@cbs12.com.
  • WPEC :: News - Town Hall

    Town Hall

    Watch the Aug. 23, 2012 town hall meeting on issues affecting South Florida.
  • WPEC :: News - Spot Crime

    Spot Crime

    Search for any crime within a 5-mile radius of your home!
  • WPEC :: News - Health Care Reform

    Health Care Reform

    The Supreme Court ruling to uphold the Affordable Care Act sparked a new battle. Check here daily for the latest developments, locally and across the country.
  • WPEC :: News - Trending with Tracy

    Trending with Tracy

    Tracy St. George, a South Florida DJ for WRMF, delivers the hottest celebrity news weekly on CBS12's Trending with Tracy.

  • WPEC :: News - CBS12 Dolphins Extra

    CBS12 Dolphins Extra

    Get the inside scoop on the Miami Dolphins with CBS12's Josh Samuels and Pat Murphy.
  • WPEC :: News - Wednesday's Weather Kid

    Wednesday's Weather Kid

    Welcome to Wednesday's Weather Kid on CBS12's Good Morning South Florida! Here we let middle schoolers produce a "bus stop forecast" each Wednesday. Contact Robin Cross at rcross@cbs12.com for info on ...
  • WPEC :: News - Washington Guardian

    Washington Guardian

    The Washington Guardian is an online newspaper committed to providing watchdog journalism from the nation's capital aimed at safeguarding everyday Americans' tax dollars, security and freedoms.
  • WPEC :: News - Your Voice. Your Future.

    Your Voice. Your Future.

    As the country faces challenges from federal budget issues to jobs and national debt, your voice is critical to the future.
  • WPEC :: News - Waste Watch

    Waste Watch

    How are your tax dollars being spent? Waste Watch tracks whether local, state and federal governments or any groups are using your money wisely...or wasting it.
  • WPEC :: News - Top Stories

    Top Stories

    Get up to the minute information from South Florida and the Treasure Coast in our Top Stories section!
  • WPEC :: News - Newscast Links

    Newscast Links

    Get links and contact information from items mentioned in our newscasts!
  • WPEC :: News - Tech-Xperts

    Tech-Xperts

    Get tips and advice on everything tech related, from smartphones, gadgets and online security to Twitter topics and Facebook news and tips!
  • WPEC :: News - Treasure Coast

    Treasure Coast

    Watch local news videos and read news stories happening in Treasure Coast!
  • WPEC :: News - Palm Beach County

    Palm Beach County

    Watch local news videos and read news stories happening in Palm Beach County!
  • WPEC :: News - News Tips

    News Tips

    Do you have a lead on a good news tip or want to share a story idea? Let us know!
  • WPEC :: News - Raw News

    Raw News

    See the news as it happened, raw and unedited!
  • WPEC :: News - CBS 12 News LIVE Stream

    CBS 12 News LIVE Stream

    Watch LIVE CBS 12 newscasts and breaking news as it happens here!
  • WPEC :: News - Traffic Links

    Traffic Links

    Get links and information on traffic conditions, rail information and arrival and departure information for PBIA, MIA and FLL!
  • WPEC :: News - PBC Mugshot Roundup

    PBC Mugshot Roundup

    View a selection of mugshots from the Palm Beach County Jail's portrait studio, via a publicly available online booking search.
  • WPEC :: News - Sex Offender Mapping

    Sex Offender Mapping

    Search for any registered sexual offender or predator within a 5-mile radius of your home!
  • WPEC :: News - Product Recalls

    Product Recalls

    Get the latest recalls on autos, child safety seats, consumer products and FDA food and drugs recalls!
  • WPEC :: News - Forever Family

    Forever Family

    Watch videos and read stories of local people and families in need!
  • WPEC :: News - The Dwyer Awards

    The Dwyer Awards

    The William T. Dwyer Awards for Excellence in Education honors outstanding educators from public and private schools in Palm Beach County.


  • WPEC :: News - Live Feed

    Live Feed

    Watch the CBS News Live Feed for news stories as they happen!
  • WPEC :: News - National and World News

    National and World News

    Get the latest headlines from across the nation and around the world.
  • WPEC :: News - Pet of the Day

    Pet of the Day

    Watch our "Pet of the Day" videos for adorable pets that need a loving home!
  • WPEC :: News - Pump Patrol

    Pump Patrol

    Find the lowest gas prices in West Palm Beach, get fuel saving tips, price trends and check out nationwide gas price averages!

more »

Tonight on CBS12

8:00 PM
The Job

9:00 PM
CSI: NY

10:00 PM
Blue Bloods
Complete Schedule»