Digital Domain Media Group files for bankruptcy.
Academy award winner Digital Domain Media Group Inc (DDMG), which signed a massive collaboration deal with twofour54 in Abu Dhabi at Cannes in May 2012, has filed for bankruptcy protection. The company, whose founders include Titanic director James Cameron, had total assets of USD 205 million and debts amounting to USD 214 million.
DDMG is expected to sell its production business for USD 15 million or more at a public auction, in which Searchlight Capital Partners will be the main contender.
Digital Domain, which 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, was due to open a VFX studio in twofour54 at the beginning of 2013. DDMG was expected to develop a purpose-built 150,000 square foot entertainment production complex that was due to be operational by the end of 2015 and recruit around 500 people to run the facility. The recent announcement is likely to impact the Abu Dhabi project.
Digital Domain has a long list of unsecured creditors but those that will take the biggest hit are Carl Stork, owed USD 5 million in a litigation settlement; Reliance Mediaworks Ltd. (RMW) of Mumbai, owed USD 4.6 million; and Legendary Pictures of Burbank, California, owed USD 3 million.
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