Eastman Kodak Co. on Thursday received approval from the U.S. Bankruptcy Court of the Southern District of New York for a settlement agreement with the U.K. Kodak Pension Plan.
The pension plan is Kodak’s largest single creditor in regards to the company’s Chapter 11 Bankruptcy reorganization plan. Under the agreement, which initially was announced in April, Kodak’s Personalized Imaging and Document Imaging businesses would be spun off under the ownership of the pension plan.
The agreement settles $2.8 billion U.K. Kodak Pension Plan claims, and Kodak is to receive cash and non-cash consideration of $650 million. The deal is expected to be finalized after Kodak receives approval of its reorganization plan. That approval is expected to happen by mid-fall.
“We have been working in close cooperation with (Kodak Pension Plan) to achieve a smooth transition for our PI andDI employees and customers to a new owner—one who clearly recognizes the value of these businesses and intends to help them grow and succeed,” Kodak chairman and CEO Antonio Perez said. “We look forward now to completing our reorganization and emerging as a company focused on Commercial Imaging.”
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