Digital Domain Files for Chapter 11
PORT ST. LUCIE, Fla. — According to the AP, Digital Domain, the digital production company founded by Director James Cameron, filed for Chapter 11 bankruptcy protection. It also reports that the company has reached a deal to sell its operating business to a private investment firm for $15 million
The sale agreement with Searchlight Capital Partners LP includes the company's operating subsidiaries in the U.S. and Canada.
This development comes on the heels of news last week from Digital Domain that it was closing its Florida facility.
At that time, the company announced that CEO John Textor had resigned, and executive Ed Ulbrich had been promoted to that position. Textor is said to be the company's second-largest stockholder, owning about 23 percent of shares outstanding, with the largest shareholder being Palm Beach Capital Partners, a private equity firm, which owns 38 percent.