Kodak emerges from Chapter 11 bankruptcy after 19 months

By MIKE DICKINSON - 9/3/2013 2:53:31 PM

Eastman Kodak Co. has emerged from Chapter 11 bankruptcy following completion of the final steps in its restructuring process, the company said early Tuesday afternoon.

Kodak filed for bankruptcy in the early morning hours of Jan. 19, 2012.

“We have emerged as a technology company serving imaging for business markets, including packaging, functional printing, graphic communications and professional services,” said Chairman and CEO Antonio Perez in a statement. “We have been revitalized by our transformation and restructured to become a formidable competitor--leaner, with a strong capital structure, a healthy balance sheet and the industry’s best technology.”

Final steps in its restructuring included the spinoff of its Personalized Imaging and Document Imaging businesses to Kodak Pension Plan. The company also successfully closed on its agreement for $695 million in term exit financing, paid off its debtor-in-possession lenders and second-lien noteholders in full, and completed its rights offerings, receiving approximately $406 million of new equity investments from participating unsecured creditors.

“We are setting a trajectory for profitable growth,” Perez said. “We have the right technology at the right time as printing markets increasingly transition to digital. Our broad portfolio of offset, hybrid and digital solutions enables customers to make the transition at their chosen pace using our breakthrough technology solutions.”

The company said it has filed notice of the effectiveness of its reorganization plan with the U.S. Bankruptcy Court for the Southern District of New York. Upon the effectiveness of the plan, all previously issued and outstanding shares of Kodak common stock were cancelled, as were all other previously issued and outstanding equity interests.

Kodak issued shares of a new class of common stock to participants in the rights offerings and will issue additional shares of this new class of common stock to unsecured creditors as provided in the reorganization plan. Kodak expects to make initial distributions on account of general unsecured claims by the end of September.

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