Kodak may exit bankruptcy and continue as a commercial printing company

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Kodak-film

Bloomberg reports that Eastman Kodak have arranged $793 million in financing in order to exit from bankruptcy and continue as a commercial printing company. One of the condition for the funding is the sell of Kodak's patents for $500 million.

Here is the full press release:

Kodak Agrees to $793 Million in Interim and Exit Financing
Agreement with Centerbridge, GSO, UBS and JPMorgan Sets Kodak’s Path to Emergence from Chapter 11 in the First Half of 2013

ROCHESTER, N.Y., November 12 -- Eastman Kodak Company announced today that it has entered into a commitment letter to secure $793 million in Junior Debtor-in-Possession Financing with Centerbridge Partners, L.P., GSO Capital Partners LP, UBS and JPMorgan Chase & Co. to provide the company with additional case financing and establishes the ability to convert a substantial part of the facility into exit financing, enhancing its liquidity and securing a major component of the company’s exit capital structure. This financing is a key element in the steps to enable the company to successfully execute its remaining reorganization objectives and emerge from Chapter 11 in the first half of 2013.

Kodak obtained proposals from separate lending consortia in a competitive process conducted recently, following the announcement that the company was seeking such financing.

“The additional liquidity from this financing will enable Kodak to accelerate its momentum as we continue to successfully execute on our reorganization objectives and emerge in the first half of 2013. After receiving significant interest from potential lenders, we reached agreement with Centerbridge Partners, GSO Capital Partners, UBS and JPMorgan, all of whom have proven track records in lending to companies that successfully reorganize,” said Antonio M. Perez, Chairman and Chief Executive Officer.

“The significance of this agreement for Kodak is that it establishes a clear path for our emergence as a stronger, more focused company. The significance for our customers, partners and suppliers around the world is that it solidifies our ability to continue to serve them, innovate for them and contribute to their success,” Perez said.

The financing is composed of new term loans of $476 million, as well as term loans of $317 million issued in a dollar-for-dollar exchange for amounts outstanding under the company’s pre-petition second lien notes. The financing is predicated on certain conditions and Kodak’s achievement of certain milestones, including the successful completion of the sale of Kodak’s digital imaging patent portfolio for no less than $500 million, which the company is confident it will achieve.

The commitment letter also contains provisions allowing for the conversion of up to $567 million of the loans into exit financing provided that Kodak meets certain conditions including the consummation of a Plan of Reorganization by September 30, 2013, the resolution of all of Kodak’s UK pension obligations and the completion of all or a portion of the sales of Kodak’s Document Imaging and Personalized Imaging businesses.

The financing is subject to completion of definitive financing documentation and Bankruptcy Court approval at a hearing in December which will be scheduled in the near future.

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  • http://twitter.com/axiomoixa 松林L

    Keep making Ektar100 in 120 please

  • Fiya

    Keep making Portra 400 and Ektar 100 in 120 please

    • MD

      Agreed and agreed. Ilford has me taken care of for B&W but my color work depends on Kodak! Oh, and 4×5 would be nice, too!

  • Joaquim Prado

    Maybe this is a goodnews. Film still as a market niche a kodak couldn’t be out of this. I hope they go well a release more sensitive
    Slide films.

  • Terence Amos

    More Tri X please……………

  • bjrichus

    If Kodak can sell off film to a company that understands film (Harman/Ilford?) then the future looks good for film, but if not… Hmmm…

  • GutboyBarrelhouse

    Kodak: Please keep making Portra. Please discontinue Antonio Perez.

  • http://www.facebook.com/profile.php?id=1027217102 Homer Horowitz

    This seams like good news all around! Kodak is too large of a company to only target a niche market like film but if they sell there patents to the right companie then our favorite films will still be available but may just have different names.

    Kodak moving into the printing game might stimulate new mediums and technologies there. Who knows, they may even catch up to fuji and stir up a little healthy competition!

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