Digital Domain Heads for Auction amid Lawsuit, Grave Concerns
Textor negotiated $135 million in public incentives for his company to build an animation studio in Port St. Lucie and a film school in West Palm Beach. Textor resigned this month, and the company closed the studio and the school, marking the largest-ever failure in Florida’s two-decade cash-for-jobs program.
Digital Domain last month hired Michael Katzenstein of West Palm Beach-based FTI Consulting to take over operations. According to a bankruptcy document filed this week, Katzenstein found a company in a “liquidity crisis.”
“The company was insanely cash-flow negative,” Katzenstein said. “… it was … every business day burning about $460,000 in employee costs that it couldn’t pay, and roughly $250,000 a day of other costs it couldn’t pay.”
The company asked the bankruptcy court to set aside $350,000 in a “key employee incentive plan” that would provide a bonus pool for a successful sale of Digital Domain’s assets. The document identifying the recipients of the money was sealed.