PORT ST. LUCIE, Fla. — Digital Domain Media Group filed for Chapter 11 bankruptcy Tuesday as the company looks to return to its core business of producing digital effects.
By filing for Chapter 11, the company can continue to operate while working with the court on a plan to repay creditors.
Digital Domain's new plans include an agreement with Searchlight Capital Partners L.P. Searchlight will acquire Digital Domain Productions, which includes studios in California and Canada. Digital Domain Productions will be led by recently promoted Chief Executive Officer Ed Ulbrich. Former CEO John Textor resigned late Thursday.
Searchlight will get assets of Digital Domain Productions for $15 million, subject to a public auction. The company estimates it has about $212 million in debt.