Digital Domain Media Group Inc, a company famous for its visual effects in films such as Titanic and that includes James Cameron as one of its founders, filed for Chapter 11 bankruptcy on Tuesday.
The company announced that it will sell off its subsidiary – Venice-based Digital Domain Productions – for $15 million to Searchlight Capital Partners. The production company has worked on such films as Titanic, Transformers and Pirates of the Caribbean. It intends to continue operating normally during the transition.
“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,” Eric L. Zinterhofer, co-founder of Searchlight Capital Partners L.P said in a statement. “Upon Searchlight’s consummation of the transaction, we have committed and will continue to commit our strong financial resources and expertise to ensure that this business always remains healthy and vibrant.”
The company’s creditors have agreed to provide Digital Domain Productions with up to $20 million in financing to pay for operating expenses, such as employee wages and payments to vendors and suppliers. However, the bankruptcy court must approve the funding.