Effects Co. Investors Say Unlawful Penalty Doubled Debt

Law360, Wilmington (November 20, 2012, 10:53 PM EST) -- A group of Digital Domain Media Group Inc. investors launched an adversary suit in Delaware bankruptcy court Tuesday claiming its senior creditors inflated their secured claim by imposing an unlawful $28 million penalty that doubled the special-effects shop's debt in six months.

Filed by PBC Digital Holdings LLC and a trio of related Florida-based limited liability companies, the complaint seeks to thwart the senior noteholders' $70 million secured claim set to be repaid under the busted firm's final debtor-in-possession financing order.

That $70 million claim should...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

DDMG Estate


Case Number

1:12-bk-12568

Court

Delaware

Nature of Suit

Date Filed

September 11, 2012

Law Firms

Companies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.