Former Digital Domain gets approval of $38 million global settlement

By Sheri Kasprzak

New York, May 5 – DDMG Estate, formerly Digital Domain, and its official committee of unsecured creditors received court approval of a global settlement that resolves directors’ and officers’ claims, according to an order from the U.S. Bankruptcy Court for the District of Delaware.

The company and committee said the settlement resolves the company’s claims against its current and former officers and directors, as well as claims held by senior lenders in exchange for a cash payment to the estate of $15 million derived from a broader settlement with DDMG D&O insurance carriers.

DDMG and the committee said the global settlement “resolves the D&O claims of not just the estates but numerous litigants engaged in non-bankruptcy litigation against various present and former directors and officers, resulting total settlement payments from the D&O policies and other sources ... of $38.3 million.”

Digital Domain, formerly Digital Media Group, is a Port St. Lucie, Fla.-based media company. It filed for bankruptcy on Sept. 11, 2012 under Chapter 11 case number 12-12568.

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