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Digital Domain Media reaches debtor-in-possession financing deal with lenders

Digital Domain Media Group announced that it has reached agreement with its Senior Noteholders to provide approximately $11.8M of debtor-in-possession, or DIP, financing as requested by motion submitted to the U.S. Bankruptcy Court for the District of Delaware and for the use of the Senior Noteholders’ cash collateral. In addition, the Company announced that Searchlight Capital Partners L.P., who as previously announced has entered into a purchase agreement with DDMG to acquire Digital Domain Productions, or DDPI, and its operating subsidiaries in the U.S. and Canada, including Mothership Media, has reasserted its aspiration to acquire the visual effects business of DDPI and Mothership. Searchlight’s agreement to acquire Digital Domain’s visual effects business is subject to higher and better offers and Court approval. The public auction date is currently set for Sept. 21 in New York City.