Digital Domain sale order filed; $30.2 million deal to close Sept. 28

By Jim Witters

Wilmington, Del., Sept. 25 - The sale order for Digital Domain Media Group, Inc.'s $30.2 million sale to Galloping Horse America, LLC and Reliance MediaWorks (USA) Inc. was filed Sept. 25 with the U.S. Bankruptcy Court for the District of Delaware.

Judge Brendan L. Shannon's conditional approval was granted during a hearing on Sept. 24. The debtors needed to work through issues with NBCUniversal Media, LLC and its subsidiary Universal City Studios LLC before a final order could be entered.

A sale hearing in British Columbia was scheduled for 2 p.m. ET on Sept. 25. No information was available on the outcome of that hearing.

The sale is scheduled to close on Sept. 28.

NBCUniversal's objections to the sale centered on its need for assurance that the buyer could continue to perform the digital and visual effects for two major motion pictures NBCUniversal has scheduled for 2013 release. The movies are Oblivion starring Tom Cruise and 47 Ronin starring Keanu Reeves.

During the Sept. 24 hearing, Digital Domain attorney Robert J. Feinstein said Galloping Horse placed $35 million in an escrow account and obtained a $20 million credit confirmation.

The joint venture holds an aggregate of $72 million in cash and credit available, he said.

And the buyers will have about $37 million of working capital to continue to operate the business and maintain the current employment level of about 700 workers, Feinstein added.

Galloping Horse's parent is Beijing Galloping Horse Film Co. Ltd.

Reliance is a wholly owned subsidiary of Reliance Capital Ltd., a public company listed on the Bombay Stock Exchange.

Digital Domain, a Port St. Lucie, Fla.-based media company, filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Sept. 11. The Chapter 11 case number is 12-12568.

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