Digital Vision, the Swedish manufacturer behind the Film Master grading system, has successfully come out of ‘reorganization', its domestic equivalent of Chapter 11 bankruptcy.

In October the company asked to be given protection against third parties applying for a bankruptcy order while it put its financial house in order following what it called an "acute liquidity shortage".

This was granted by a local district court and an administrator was appointed.

While the company was under reconstruction, a new chief executive and chief financial officer were appointed, there was a reduction in operating and financial costs, a review of the company's business model was conducted, SEK 35m worth of cash shares were issued and SEK 40m was offset in order to reduce debt.

Klas Åström, the new chief executive, said: “The reorganization has been a success on many levels and we are now in a very good position. The focus has been on product innovation, cost reduction and cash flow and we have further strengthened the financial procedures and enhanced our sales channels.”

All trade creditors will have their debts repaid in full.

Digital Vision is responsible for the Film Master grading system (pictured) which is used by post-production facilities and broadcasters around the world.