Debt-laden digital effects firm Digital Domain Media Group said Tuesday that it has formally filed for voluntary Chapter 11 bankruptcy. ??
It also said it has reached a purchase agreement with Searchlight Capital Partners, which will acquire Digital Domain Productions and its digital visual effects operating units in the U.S. and Canada for $15 million.
“The sale will be the subject of a public auction, and DDMG is required to engage in a process of seeking the highest and best bid for these assets,” Digital Domain said. ?
Recently promoted CEO Ed Ulbrich said:?”We’re excited to begin this new chapter in our history and look forward to partnering with Searchlight. The capital commitment of Searchlight will enable us to continue to bring our expertise to feature films, advertising, games, and other media experiences, with a focus on what we do best – creating amazing digital productions.”
He added: “We remain on track to deliver all of our clients’ productions on schedule, on budget and at the highest degree of quality that they expect from Digital Domain.”??
Under Chapter 11 bankruptcy protection, companies can restructure their debt.??Said Searchlight co-founder Eric Zinterhofer: “We believe in the visual effects business of Digital Domain, led by Ed Ulbrich and his team, and are strongly committed to maintaining the premiere product they create for customers and moviegoers.”