Digital Domain, the special effects company responsible for crafting the Coachella Tupac hologram, is filing for Chapter 11 bankruptcy, according to The Hollywood Reporter. The company has also created effects for a number of multi-million dollar Hollywood productions, including director James Cameron’s classic Titanic. Although the company has a number of high-profile gigs under its belt, apparently they don’t have a lot of money in the bank.
However, all is not lost for the digital effects company. THR is also reporting that Searchlight Capital Partners has already agreed to purchase Digital Domain Productions for $15 million. CEO Ed Ulbrich views the deal as a step in the right direction.
“We’re excited to begin this new chapter in our history and look forward to partnering with Searchlight,” he explained. “The capital commitment of Searchlight will enable us to continue to bring our expertise to feature films, advertising, games, and other media experiences, with a focus on what we do best – creating amazing digital productions.”
Ulbrich also assured his clients that all of their work will be finished in a timely fashion. “We remain on track to deliver all of our clients’ productions on schedule, on budget and at the highest degree of quality that they expect from Digital Domain,” he said.
According to Reuters, Florida helped fund the company’s $135 million studio, which was closed last week. Not surprisingly, state and local officials are not too happy about how the scenario has unfolded, and are anxious to recoup some of the money.
“If the company is not able to meet its contractual obligations there are clawback provisions for the state to seek its money back,” a spokesperson for Enterprise Florida explained. “We’re looking at the company saying ‘OK you’re not going to meet these job requirements so we need to start talking about a repayment plan.’ We would go aggressively after our investment.”
Digital Domain has worked on over 90 major Hollywood productions. In addition to Titanic, the company has produced effects for Pirates of the Caribbean: At World’s End, Star Trek, and X-Men: The Last Stand.