Digital Domain bankruptcy costs Florida governments $135 million

Miami /
Sep.September 11, 2012 03:45 PM

State, West Palm Beach and Port St. Lucie officials are faced with embarrassment following today’s announcement that the movie effects company Digital Domain Media Group is seeking Chapter 11 bankruptcy protection, according to the Palm Beach Post. In an attempt to boast local employment, the city of Port St. Lucie loaned the private company $7.5 million to help it meet its goal of hiring some 300 workers at an average salary of $65,000. “It appears now we won’t be able to collect that,” Ed Cunningham, a city spokesperson, said.

Port St. Lucie’s other financial ties to the firm include a 130,000-square-foot headquarters and animation studio the city bankrolled, an additional $441,067 it gave the company to cover extra construction costs and a $40 million bond. The city of West Palm Beach gave $2 million to Digital Domain to found a school that is now on the verge of collapse. In total, Florida governments invested nearly $135 million in the company.

Digital Domain was valued at $400 million May 1, but as of today it is valued at a mere $15 million. Florida Governor Rick Scott has since ordered a probe into the state’s decision to invest in the company. [Palm Beach Post]Christopher Cameron


Related Articles

arrow_forward_ios
Raanan Katz of RK Centers and Best Buy at 1880 Palm Beach Lakes Boulevard in West Palm Beach (RK Centers and Orion Miami)
Raanan Katz’s RK Centers buys West Palm Best Buy for $12M
Raanan Katz’s RK Centers buys West Palm Best Buy for $12M
UOVO Founder Steven Guttman (UOVO)
UOVO scoops up art storage facilities in Miami, West Palm Beach in $50M buy
UOVO scoops up art storage facilities in Miami, West Palm Beach in $50M buy
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, iStock, Banyan Cay)
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Developer of Banyan Cay Resort in West Palm faces charge tied to $65M healthcare fraud
Renderings of Joseph’s Classic Market building, Workspaces at the Press and Shops at the Press. Tricera executives Scott Sherman (left) and Ben Mandell (Storyn, Tricera)
Tricera Capital scores $51M for Palm Beach Post office-retail redevelopment
Tricera Capital scores $51M for Palm Beach Post office-retail redevelopment
Clockwise from top left: 375 South County Road, 225 Worth Avenue, 220 Peruvian Avenue and 219 Worth Avenue (Google Maps) 
Burton Handelsman sells Palm Beach retail, offices for $58M
Burton Handelsman sells Palm Beach retail, offices for $58M
An aerial of 307 Melody Lane in Lantana (Colliers)
Multifamily portfolio in Palm Beach County hits market for $12M
Multifamily portfolio in Palm Beach County hits market for $12M
The Bristol at 1100 South Flagler Drive, West Palm Beach (Bristol, TV Guide)
Annenberg publishing heir sells condo at The Bristol in WPB for $8M
Annenberg publishing heir sells condo at The Bristol in WPB for $8M
2001 and 2007 Palm Beach Lakes Boulevard (Google Maps)
Investor continues buying spree, snags West Palm Beach office buildings for $7M
Investor continues buying spree, snags West Palm Beach office buildings for $7M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...