Digital Domain: special effects company insolvent

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The U.S. special effects studio Digital Domain has made an insolvency petition. At the same time, the company announced its plan to sell the operating business with production studios in California and Vancouver, to the investment firm Searchlight Capital. The acquisition is expected to cost 15 million U.S. dollars, but it is subject to the proviso that no one wants to pay a higher purchase price and that the bankruptcy court agrees. This is the core business to be rescued by the major Hollywood studios, after an aggressive expansion of the company plunged into crisis. Under the retired head John Textor, the debt stood at the end of June nearly 215 million U.S. dollars. The state assets over the value of 205 million U.S. dollars.
The studio for special effects was founded in 1993 by director James Cameron, among other things, and had participated in many Hollywood productions thereafter. Awarded the studio among other things, each with one Oscar for the special effects in "Titanic," "What Dreams May Come" and "The Curious Case of Benjamin Button" was. In addition, Digital Domain has worked on include "The Fifth Element", "I, Robot" and the "Transformers" films with. Recently the studio in April 2012 caused a sensation when it was shot rapper Tupac Shakur in 1996 for a live performance as a hologram 'revived'.

 Digital Domain was recorded in May 2012, a loan of 35 million U.S. dollars. For this, the company had to show at any time from now but cash reserves at a certain height. When that did not succeed more in August, Digital Domain was reliant on the creditor initially refrained to reclaim their money. But in the face of the threatening situation, the company decided now anyway, to apply for creditor protection.

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