On September 12, 2012, the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") authorized Digital Domain Media Group, Inc. (the "Company") to obtain secured financing (the "DIP Financing") on an interim basis pursuant to that certain Priming Superpriority Debtor-in-Possession Credit Facility Term Sheet, dated as of September 11, 2012, by and among the Debtors identified therein and Hudson Bay Master Fund Ltd, in its capacity as agent on behalf of certain lenders (the "DIP Term Sheet"). The DIP Financing will be provided by the Company's existing senior noteholders. By orders entered by the Bankruptcy Court on September 12, 2012, the Company has been authorized to borrow up to $11,789,000 through the date of a final hearing on October 1, 2012, subject to the achievement of certain milestones in the bankruptcy case. The DIP Financing is secured by substantially all of the assets of the Company. Assuming that the DIP Financing is approved at the final hearing, the maturity date of the facility shall be December 31, 2012. The DIP Financing must be prepaid in the event of any sales of assets by the Company outside the ordinary course of business. The DIP Financing contains standard terms and conditions of a financing of this type. All material documents relating to the DIP Financing are on file with the Bankruptcy Court.

The foregoing description of the DIP Term Sheet does not purport to be complete and is subject to, and qualified in its entirety by, the full text of the DIP Term Sheet, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

(a) The disclosure set forth above under Item 1.01 (Entry into a Material Definitive Agreement) is hereby incorporated by reference into this Item 2.03.

(d) Exhibit

The following Exhibit is filed as a part of this Current Report on Form 8-K:

Exhibit No.                  Description
   10.1       Priming Superpriority Debtor-in-Possession
              Credit Facility Term Sheet, dated as of
              September 11, 2012, by and among the
              Debtors identified therein and Hudson Bay
              Master Fund Ltd, in its capacity as agent
              on behalf of certain lenders