Eastman Kodak Co. stock was trading up nearly 7 percent Friday afternoon—a day after the company filed bankruptcy and its shares moved from the New York Stock Exchange to an over-the-counter listing.
Kodak (OTB: EKDKQ.PK) was trading at 32 cents a share, up 2 pennies from Thursday’s close.
Late Thursday, Judge Allan Gropper of the U.S. Bankruptcy Court for the Southern District of New York approved initial availability of $650 million in interim debtor-in-possession financing by Citigroup Inc., Kodak said.
The company plans to use the funds, among other things, to pay vendors and other suppliers for all post-bankruptcy petition goods and services, and to operate its day-to-day business activities. Gropper set Feb. 15 as the date of a hearing to issue the final order regarding first-day motions.
Kodak in the early morning hours Thursday filed to reorganize its U.S. business under Chapter 11.
The interim debtor in possession approved represents the first portion of the fully committed, $950 million debtor-in-possession credit facility Kodak obtained from Citigroup to enhance liquidity and working capital.
The court approved additional first-day motions that assure ongoing business will not be disrupted, Kodak said.
The company received the court’s OK to pay U.S. employees in the usual manner and to continue their health care and other benefits programs without disruption; pay certain prepetition wages and reimbursable U.S. employee expenses; maintain and administer customer programs and honor prepetition obligations to customers, including all pending orders, warrantees and other customer programs; and continue to use existing cash management systems and maintain existing bank accounts.
“The court’s immediate approval of these critical first day motions is an important first step, enabling us to continue to operate our U.S. business in ordinary course, and putting us on the right path to a successful reorganization,” Chairman and CEO Antonio Perez said in a statement.
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