Digital Domain Says Studios “Freaking Out”; Gets OK On September 21 Auction

Hollywood studios will not be pulling the plug on projects at the financially troubled special-effects company after Digital Domain got some breathing room yesterday in bankruptcy court. Judge Brenden Shannon approved a fast-tracked auction of Digital Domain Media Group for September 21 and a debtor-in-possession order (read it here) that gives the almost-broke company immediate access to almost $12 million. The new auction date comes after newly named DDMG chief Ed Ulbrich told the court that six Hollywood studios told him they would start pulling projects from the Oscar-winning company this week unless Digital Domain had a clear financial path forward. The loss of those effects projects would result in the removal of what is currently 80% of the company’s revenues. “We’ve been fighting diligently to fend off a run on the company, Ulbrich testified. DDGM’s lawyer Robert Feinstein put it even more bluntly: “The studios are freaking out,” the attorney told the judge. Some of the films that Digital Domain is currently working on include Lionsgate’s Ender’s Game (Digital Domain is a co-producer), New Line’s Jack The Giant Killer, and Paramount’s G.I. Joe: Retaliation.

Related: Digital Domain Files For Bankruptcy Protection But With Sales Agreement (more…)

This article was printed from https://deadline.com/2012/09/digital-domain-says-studios-freaking-out-gets-ok-on-september-21-auction-335541/