Director Cameron's company files for bankruptcy

Sep 11, 2012

(AP)—The digital production company founded by "Titanic" director James Cameron has filed for bankruptcy protection in the U.S. and Canada and reached a deal to sell its operating business to a private investment firm for $15 million.

Digital Domain Media Group Inc., best known for its work on "Titanic," filed in the U.S. Bankruptcy Court for the District of Delaware, along with a Canadian court, the company said Tuesday.

The sale agreement with Searchlight Capital Partners LP includes the company's operating subsidiaries in the U.S. and Canada. It must be approved by the court.

The company has studios in California and Canada that create digital visual effects, animation and digital production for the entertainment and advertising industries.

Digital Domain also produced visual effects for "Pirates of the Caribbean: At World's End" and the "Transformers" movies.

Day-to-day operations of Digital Domain's remaining business won't be affected by the Chapter 11 bankruptcy filing, the company said. Debt holders have agreed to provide up to $20 million in financing that will fund its activities while it restructures.

As of June 30, the company, which went public in November, had total assets of about $205 million and total liabilities of about $214 million.

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VendicarD
4.2 / 5 (5) Sep 11, 2012
Go public. Sell your stock. File for bankruptcy. Walk away with tens of millions in your pocket.

It's how capitalists legally steal money from suckers.
DGBEACH
3.7 / 5 (3) Sep 11, 2012
I once ended up penniless after one such company screwed me out of many months of salary, only to reappear months later with no debts and plenty of new investors.
You're right Vendicar, the American ultra-capitalist system only benefits the richest few- like the Romneys of this world!
Lurker2358
3.7 / 5 (3) Sep 11, 2012
Maybe if they didn't spend so much time "remastering" old movies nobody watched anyway, or converting them to 3-d, then they could have made some new movies that were worth watching.

Anyway, yeah.

Capitalism: "Rob from the poor, give to the rich."
Jotaf
3 / 5 (2) Sep 11, 2012
Don't forget the other companies (suppliers and such) which will never get paid for their services, as well as the employees. While the owner has the right to keep all of his money. How is such an asymmetric money flow even legal?
VendicarD
4 / 5 (4) Sep 11, 2012
"How is such an asymmetric money flow even legal?" - Jotaf

Corporations were given all of the rights of individuals, and then more.

The voting public failed in their task to manage those who rule the nation.

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