Bankruptcy court approves sale of James Cameron company
New York: A bankruptcy court in the US has approved the proposed USD 30.2 million sale of Hollywood film-maker James Cameron's Digital Domain Productions to Reliance MediaWorks and China-based Galloping Horse America.
Following the approval from the US Bankruptcy Court in District of Delaware, the companies are set to sign final agreements for transfer of the business of Digital Domain Media, which has provided special effects to Hollywood blockbusters like 'Titanic', 'Transformers' and 'The Curious Case of Benjamin Button'.
Shares of Reliance MediaWorks (RMW) had surged 13 percent yesterday in intra-day trade after the announcement of the deal but closed Rs 77.3 apiece. It gained further 3 percent on Tuesday to settle at Rs 79.50 at the BSE on Tuesday.
The winning joint bid for the company, which had filed for bankruptcy protection earlier this month, was announced on Monday by Anil Ambani-led Reliance Group's RMW and China's Galloping Horse, which provides film and TV financing, production, distribution, advertising and publishing services.
"A joint venture, led by Galloping Horse America, LLC in partnership with Reliance MediaWorks has submitted the winning bid to acquire the visual effects, Mothership Media and certain other businesses and assets of Digital Domain and subsidiaries for USD 30.2 million at a September 21, 2012 auction in New York," RMW had said in a statement on Monday .
While RMW will hold 30 percent stake, the majority would remain with Galloping Horse in Digital Domain joint venture.
The two companies will acquire all assets constituting the businesses of Digital Domain in feature films, advertising, visual effects, commercial production, studios in the US and Canada and a co-production stake in the feature film "Ender's Game".
The businesses will continue to operate in the normal course, with the joint venture assuming ownership.
RMW has been working with Digital Domain for past few years on various projects.