Hearing November 27th to determine whether senior loan will be reclassified as equity.
Notice of Hearing on Motion of PBC Digital Holdings, LLC, PDB MGPEF DDH, LLC, and PBC DDH Warrants, LLC For Authority to Challenge the Final Dip Order And Seeking Disallowance and/or Reclassification of the Senior Noteholders Claims
Objections need to be in by November 20th.
Unsecured Creditors's Committee gets 425K to investigate and pursue claims against Digital Domain Directors through their D&O Insurance policies. Investigation to be completed by December 15th. Any money not used to be returned to DIP Collateral fund by December 31st.
Palm Beach Capital and Senior Lenders agree not to pursue case in court other than BK unless, the court finds that it does not have jurisdiction to settle dispute. Senior Lenders agree to provide info regarding Palm Beach claims.
Asset Sales and auction proceeds up to 40 million to be included as DIP financing and returned to senior lenders as it comes in. Make WHole Penalty not included in that number as it is being disputed by Palm Beach Capital and it will be decided at Hearing November 27th. Palm beach Capital also as until early December to formally challenge the final DIP order.
There are key events coming up.
1) Asset sales and auctions at the end of the month. Final order hearing approving those sales is December 4th.
2) Palm Beach Capital motion asking for Senior Lender claims to be converted to equity is scheduled for November 27th.
3) Unsecured Creditor's Committee pursuing D&O insurance policies of Digital Domain officers (this could lead to a very nice payout, as it is almost a cinch).
Also, the alleged deregistering turned out to be a non event, as OTCMarkets announced today that the symbol stays the same DDMGQ, but since Digital Domain has announced that it will not be reporting in the future, it is changed to another Tier, which basically means nothing changes. Change in effect as of today.
It looks like they are playing around with the price today. It is also 100 percent certain that there are certain official dates scheduled, as of now, all the way until the last day of December, so that means that there is absolutely zero chance that this BK is settled any time soon.
If this is settled by August of 2013 I would be surprised, and that means it will trade all the way through, and there is no risk of having the shares canceled. They have to file a BK exit plan, or, in all likelihood, a liquidation plan, and this cannot happen until the other events happen, and then it will still be months after that for it to end.
Wit the Presidential Elections there wasn't much news about this hearing, but the asset sales will bring some news, as will the showdown in court coming up in just under three weeks.
It will move at some point. They are cashing out a few shorts at 2.5 cents today.
