but DDMG would soon be unable to access the cash needed to fund its Venice operations and its Florida studio growth. Documents and emails demonstrate that Digital Domain senior management believed they had options to put cash into the company. However, Tenor Capital had significant weight as a chief lender and, according to Palm Beach Capital and the Tenor strategy, may have been shorting DDMG stock to profit from its failure.

When a deal to fund the company failed on July 31, Tenor Capital cited a violation of a minimum cash covenant