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A U.S. Bankruptcy Court judge on Wednesday approved Eastman Kodak Co.’s debtor-in-possession financing for $950 million between Kodak and its lenders and second-lien bondholders.
Judge Allan Gropper of the U.S. Bankruptcy Court for the Southern District of New York entered a final order granting the approval.
“Today’s agreement is another step towards ensuring that Kodak is positioned to execute on the goals the company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities, and enable Kodak to focus on its most valuable business lines,” Kodak chairman and CEO Antonio Perez said.
Kodak and its U.S. subsidiaries filed to reorganize its U.S. business under Chapter 11 on Jan. 19. The $950 million includes the initial $650 million approved as part of the first day motions.
Gropper, during a hearing Wednesday in Manhattan, ruled Kodak can end a deal for naming rights to the theater that plays host to the annual Academy Awards show, Bloomberg reported.
The Kodak Theatre agreement required Kodak to pay $72 million in annual installments over 20 years, a court filing states. Kodak pays $3.6 million a year and has $38 million in payments left on the contract, Bloomberg reported.
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