This just in….
Michael Katzenstein, Chief Restructuring Officer for Digital Domain Media Group, has stated in sworn documents filed with the bankruptcy court today (9/11/12) that the City’s land will revert back to the City if certain conditions are not met by December 31, 2012.
The sworn statement also acknowledges that , as of today, those conditions have not been fulfilled.
The City of West Palm Beach gave the land to Digital Domain under the condition that a new building would be constructed on the land. The agreement includes what is called a “reverter” clause, that requires the land be returned to the City if that doesn’t happen.
That clause kicks in if Digital Domain can’t finance the construction by December 31, 2012.
As part of recent bankruptcy developments, several people involved in business dealings with Digital Domain have staked a claim on the property that the City gave to Digital Domain. According to the law, none of these claims have priority over the City’s right to get the land back.