Digital Domain Files for Bankruptcy

Likely to Stay in the Film Industry

Earlier today Digital Domain filed for Chapter 11 bankruptcy with $14 million in debt and $50.7 million in losses through June 30. The company stated it will sell most of the company’s assets to Searchlight Capital Partners for $15 million and that Hudson Bay Master Fund would provide $20 million in debtor-in-possession financing. Digital Domain is likely to stay in the film business. The company is responsible for some of the costs of the “$100 million film Harrison Ford futuristic film ‘Ender’s Game’”  As of June 30, it had paid $17.2 million toward the production of Ender’s Game.

It’s interesting to note that this is the first time the Ender’s Game budget has been referenced in full: $100 million. The Ender’s Game movie will be released November 1, 2013.

Source.

UPDATE: Searchlight Capital was not approved to buy Digital Domain’s assets. Digital Domain will go to auction on September 21. Click here for more details.

  • http://twitter.com/Darian_Robbins Darian Robbins

    I believe it is Searchlight instead of Starlight Capital. It looks like Searchlight gave them enough to get rid of their outstanding debt that was coming due, and Hudson coughed up enough funding to keep the operations and the work rolling until the financial smoke has fully cleared. I still expect the production copy to be scooped up again by another effects house.

  • http://twitter.com/Darian_Robbins Darian Robbins

    Update: . The Judge is not approving the quick sale by Searchlight Capital. Digital Domain Productions is going to an auction sale on Oct. 2nd. In the mean tie according to this Reuters article. DD does not have enough cash on hand to make payroll this Friday! I’m not sure if that 20 million Hudson Bay was coughing up was contingent on the initial sale of Searchlight going through. I though t that 20 million was just going be used to keep the lights on. If not that means the DD shuts down. No work :( That means people out of work :( and a longer wait for the movie. This gets sadder by the minute.

    http://www.reuters.com/article/2012/09/12/entertainment-us-digitaldomain-bankruptc-idUSBRE88B1GA20120912?feedType=RSS&feedName=innovationNews&utm_source=dlvr.it&utm_medium=twitter&dlvrit=309300

  • http://twitter.com/Darian_Robbins Darian Robbins

    Here’s an article speculating that Prime Focus is lining up to buy. They have recently done some 3D work for Judge Dredd, which is being produced and distributed by Lionsgate Films.

    http://www.awn.com/news/business/prime-focus-eyes-digital-domain-buy

    Lionsgate currently owns a 25% stake in the Ender’s Game Movie from it’s acqusition of Summit Entertainment earlier this year.

  • DD employee

    Try only to blog facts not speculation…

    • endersansible

      The published mistakes were in fact mistakes; this post was never intended to speculate. We apologize to all our readers as we do with all mistakes.

    • http://twitter.com/Darian_Robbins Darian Robbins

      If you work for DD then you can help me with the speculations and state the facts. I’m interested in following this story because I’m sorry that DD is in the situation and runs the risk of more people losing their jobs and a delay on bringing to life my all time favorite book.

      • http://www.facebook.com/profile.php?id=624546088 Stephen Sywak

        There’s only so much that they can say. Whatever they post HERE is just as public as anything that gets reported by Reuters, Variety, etc.