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Kodak to file reorganization plan in April

Rochester Business Journal
March 1, 2013

Eastman Kodak Co.’s path to emergence from bankruptcy became clearer Friday.

The company announced an agreement with the Steering Committee of the Second Lien Noteholders to amend the terms of its interim and exit financing package. The amendments provide Kodak with additional flexibility to execute its reorganization objectives and emerge from Chapter 11 in mid-2013, the company said.

Kodak plans to file its reorganization plan in April.

“We are establishing a clear path for our emergence as a stronger, focused commercial
imaging company,” Chairman and CEO Antonio Perez said. “As we move toward finalizing our plan of reorganization, we are pleased to have reached an agreement with our lenders that gives Kodak additional financial flexibility in how we reach our ultimate goal of a successful emergence with a sustainable business model.”

As part of the agreement, Kodak committed to achieving at least $600 million in cash proceeds through the disposition of any combination of specified non-commercial imaging assets, including its Document Imaging and Personalized Imaging businesses, and trademarks and related rights.

In addition, Kodak, along with the Steering Committee of the Second Lien Noteholders and the Unsecured Creditors Committee, jointly will hire a search firm to begin identifying potential new directors for the board of directors which will lead the reorganized Kodak following emergence, the company said.

The existing board expects to appoint an additional independent director following closing of the financing. This director would be available to continue to serve on the board following Kodak’s emergence from bankruptcy.

Kodak anticipates closing the financing in mid- to late March, subject to the prior approval of the Bankruptcy Court.

On Thursday, Kodak reported a net loss of $58.1 million in January on sales of $127.9 million for its companies in bankruptcy. Its loss from continuing operations totaled $57.2 million.

The net loss for January is down from $100.3 million in January 2012 on sales of $143.9 million.

Kodak had reported a net loss in December of $272.4 million on sales of $152.1 million. Its loss from continuing operations totaled $272 million.

The company listed cash and cash equivalents of $279.6 million on Jan. 31, down from $337.2 million on Dec. 31 and compared with $682.8 million on Feb. 29, 2012.

The financials are contained in monthly operating reports filed with the U.S. Bankruptcy Court to show asset use and cash for the U.S. units of Kodak that are in Chapter 11. The company filed for bankruptcy Jan. 19, 2012. It aims to emerge from bankruptcy in the first half of 2013.

The reports include costs that Kodak is responsible for companywide, but do not reflect its international businesses that were not part of the bankruptcy filing.

Kodak cautions that the monthly reports are prepared solely to comply with the bankruptcy court’s reporting requirements. They are unaudited and were not prepared in accordance with generally accepted accounting principles.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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