Less than a year after going public, the digital production company founded by director James Cameron has filed for Chapter 11 bankruptcy protection and agreed to sell the core of its business to a private investment firm for $US15 million.

Digital Domain Media Group, best known for its work on Cameron's Titanic, has produced visual effects for more than 90 movies, including Pirates of the Caribbean: At World's End and the Transformers series. And in April, its Tupac Shakur "hologram" made a splash when it took the stage at the Coachella Valley Music and Arts Festival and appeared to perform alongside Snoop Dogg.

Digital Domain, best known for its work on James Cameron's Titanic, filed for bankruptcy protection.

But the company was "running out of cash," Chief Restructuring Officer Michael Katzenstein said in court filings, and had violated cash and debt requirements set forth by its lenders. It tried to find additional outside sources of capital, but wasn't able get enough to restructure its debt and pay its operating expenses, he said.

The downward spiral was swift. The company went public just 10 months ago but sold nearly 5 million shares at $US8.50 each, below the expected $US10 to $12 range. Drifting to the $US5 range by spring, the stock then spiked as high as $US9.20 following huge reaction to the Shakur hologram, with the performance garnering 15 million YouTube hits within 48 hours and winning a top award at the creative marketing gathering Cannes Lions. Building on the buzz, Digital Domain got the greenlight to create an Elvis Presley hologram for shows, film, TV and other projects worldwide, including appearances.