Animation company Digital Domain Media Group Inc. (DDMG: Quote) has filed for Chapter 11 bankruptcy protection, as part of its prior announced strategic realignment, and to ensure the long-term future of its core business and facilitate a sale of assets. Further, DDMG said it has reached a purchase deal with Searchlight Capital Partners L.P. to buy Digital Domain Productions and its operating units in the U.S. and Canada or "DDPI", including Mothership Media, subject to the receipt of higher and better offers and Court approval.
As per the purchase agreement, Searchlight would buy the assets of DDPI free and clear of all claims and encumbrances pursuant to section 363 of the U.S. Bankruptcy Code for $15 million.
As of June 30, 2012, the company had total balance sheet assets of nearly $205 million and total balance sheet liabilities in the approximate amount of $214 million. The company closed its Port St. Lucie, Florida operations last week and fired most of the employees.
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by RTT Staff Writer
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