In this film image released by Paramount Pictures, a scene is shown from 3-D version of James Cameron’s romantic epic “Titanic.” Digital Domain Media Group Inc., best known for its work on Cameron’s “Titanic,” filed in the U.S. Bankruptcy Court for the District of Delaware, along with a Canadian court, Tuesday, Sept. 11, 2012. ital production company founded by director James Cameron said Tuesday that it filed for Chapter 11 bankruptcy protection and reached a deal to sell its operating business to a private investment firm for $15 million.PORT ST. LUCIE, Fla. – Less than a year after going public, the digital production company founded by director James Cameron has filed for Chapter 11 bankruptcy protection and agreed to sell the core of its business to a private investment firm for $15 million.
Digital Domain Media Group Inc., best known for its work on Cameron’s “Titanic,” has produced visual effects for more than 90 movies, including “Pirates of the Caribbean: At World’s End” and the “Transformers” series. And in April, its Tupac Shakur hologram made a splash when it took the stage at the Coachella Valley Music and Arts Festival and appeared to perform alongside Snoop Dogg.
But the company was “running out of cash,” Chief Restructuring Officer Michael Katzenstein said in court filings, and had violated cash and debt requirements set forth by its lenders. It tried to find additional outside sources of capital, but wasn’t able get enough to restructure its debt and pay its operating expenses, he said.
The downward spiral was swift. The company went public just 10 months ago, selling nearly 5 million shares at $8.50 each, below the expected $10 to $12 range. Drifting to the $5 range by spring, the stock then spiked as high as $9.20 following huge reaction to the Shakur hologram, with the performance garnering 15 million YouTube hits within 48 hours and winning a top award at the creative marketing gathering Cannes Lions.
Building on the buzz, Digital Domain got the green light to create an Elvis Presley hologram for shows, film, TV and other projects worldwide, including appearances.