â€œTitanicâ€ effects creator Digital Domain bankrupt, sale agreed
By Tanya Agrawal
Tue Sep 11, 2012 5:31pm EDT
(Reuters) â€“ Digital Domain Media Group Inc, which won Academy Awards for visual effects in films including â€œTitanic,â€ filed for bankruptcy protection on Tuesday and said its production business would be sold, raising questions about millions of dollars in Florida subsidies for a new studio.
- The company, whose founders include â€œTitanicâ€ director James Cameron, went into Chapter 11 bankruptcy just 10 months after its initial public offering, with the companyâ€™s market value tumbling from a peak of $400 million in May.
- The bankruptcy is a black eye for Florida state and local officials who committed $135 million to subsidize the construction of a state-of-the-art studio in Port St. Lucie, which the company closed last week.
- Digital Domain shares traded on the over-the-counter market for 11 cents on Tuesday, down 80 percent from Mondayâ€™s close of 55.4 cents on the New York Stock Exchange, and far from a peak of $9.16 on May. 1.
- The Case is In re: Digital Domain Media Group Inc, Case No. 12-12568, U.S. Bankruptcy Court, District of Delaware.