Digital Vision seeks fiscal shelter
Manufacturer facing 'short-term liquidity challenge'Stockholm, Sweden-headquartered Digital Vision, a leading maker of digital-imaging products for postproduction in areas including digital intermediate, 3-D and restoration, has gone into company reorganization, which can be likened to Chapter 11 bankruptcy protection.
In a letter to customers, CEO Gert Schyborger said Digital Vision, traded on the Stockholm Stock Exchange's Small Cap list, is working to solve a "short-term liquidity challenge," while "creating an exciting and robust long-term plan."
A letter to creditors further explained that the WGA strike and the current financial crisis have led to weakened sales: "Due to several bankruptcies among post-services companies, the supply of secondhand products increased ... and a large number of companies have had difficulties obtaining funding for the purchase of new products."
The customer letter said assessment of the company suggests Digital Vision has a strong portfolio, and product demand is likely to increase.
"The market had a temporary downturn, but the move toward HDTV, digital cinema and Blu-Ray Disc speaks strongly for Digital Vision," the letter said.
A creditors meeting is scheduled for Oct. 28.
Digital Vision maintains wholly owned subsidiaries in Los Angeles, London and Hong Kong.