“Titanic” effects creator Digital Domain bankrupt, sale agreed
By Tanya Agrawal
Tue Sep 11, 2012 5:31pm EDT
(Reuters) – Digital Domain Media Group Inc, which won Academy Awards for visual effects in films including “Titanic,” filed for bankruptcy protection on Tuesday and said its production business would be sold, raising questions about millions of dollars in Florida subsidies for a new studio.
- The company, whose founders include “Titanic” director James Cameron, went into Chapter 11 bankruptcy just 10 months after its initial public offering, with the company’s market value tumbling from a peak of $400 million in May.
- The bankruptcy is a black eye for Florida state and local officials who committed $135 million to subsidize the construction of a state-of-the-art studio in Port St. Lucie, which the company closed last week.
- Digital Domain shares traded on the over-the-counter market for 11 cents on Tuesday, down 80 percent from Monday’s close of 55.4 cents on the New York Stock Exchange, and far from a peak of $9.16 on May. 1.
- The Case is In re: Digital Domain Media Group Inc, Case No. 12-12568, U.S. Bankruptcy Court, District of Delaware.