Kodak information Chapter eleven chapter, expects to finish restructuring by 2013
Move of Items and Providers to Clients to Proceed Globally in Peculiar Course
Non-U.S. Subsidiaries Are Not Included in U.S. Submitting and Are Not Topic to Courtroom Supervision
Firm Secures $950 million in Debtor-in-Possession Financing in U.S.
Kodak’s Reorganization to Facilitate Emergence as Worthwhile and Sustainable Enterprise
ROCHESTER, N.Y.–(BUSINESS WIRE)–Eastman Kodak Firm (“Kodak” or the “Firm”) introduced as we speak that it and its U.S. subsidiaries filed voluntary petitions for chapter eleven enterprise reorganization within the U.S. Chapter Courtroom for the Southern District of New York.
“Our objective is to maximise worth for stakeholders, together with our staff, retirees, collectors, and pension trustees. We’re additionally dedicated to working with our valued clients.”
The enterprise reorganization is meant to bolster liquidity within the U.S. and overseas, monetize non-strategic mental property, pretty resolve legacy liabilities, and allow the Firm to concentrate on its most precious enterprise strains. The Firm has made pioneering investments in digital and supplies deposition applied sciences in recent times, producing roughly seventy five% of its income from digital companies in 2011.
Kodak has obtained a totally-dedicated, $950 million debtor-in-possession credit score facility with an 18-month maturity from Citigroup to reinforce liquidity and dealing capital. The credit score facility is topic to Courtroom approval and different circumstances precedent. The Firm believes that it has enough liquidity to function its enterprise throughout chapter eleven, and to proceed the move of products and providers to its clients within the peculiar course.
Kodak expects to pay worker wages and advantages and proceed buyer packages. Subsidiaries outdoors of the U.S. will not be topic to proceedings and can honor all obligations to suppliers, every time incurred. Kodak and its U.S. subsidiaries will honor all publish-petition obligations to suppliers within the strange course.
“Kodak is taking a big step towards enabling our enterprise to finish its transformation,” stated Antonio M. Perez, Chairman and Chief Government Officer. “Concurrently we now have created our digital enterprise, we’ve got additionally already successfully exited sure conventional operations, closing thirteen manufacturing crops and one hundred thirty processing labs, and decreasing our workforce by forty seven,000 since 2003. Now we should full the transformation by additional addressing our value construction and successfully monetizing non-core IP belongings. We look ahead to working with our stakeholders to emerge a lean, world-class, digital imaging and supplies science firm.”
“After contemplating some great benefits of chapter eleven right now, the Board of Administrators and the whole senior administration group unanimously consider that this can be a essential step and the fitting factor to do for the way forward for Kodak,” Mr. Perez continued. “Our objective is to maximise worth for stakeholders, together with our staff, retirees, collectors, and pension trustees. We’re additionally dedicated to working with our valued clients.
“Chapter eleven provides us the perfect alternatives to maximise the worth in two crucial elements of our know-how portfolio: our digital seize patents, that are important for a variety of cellular and different shopper digital units that seize digital pictures and have generated over $three billion of licensing revenues since 2003; and our breakthrough printing and deposition applied sciences, which give Kodak a aggressive benefit in our rising digital companies.”
Mr. Perez concluded, “The Board of Administrators, the senior administration group and I want to underscore our appreciation for the onerous work and loyalty of our staff. Kodak exemplifies a tradition of collaboration and innovation. Our staff embody that tradition and are important to our future success.”
Kodak has taken this step after preliminary discussions with key constituencies and intends to work towards a consensual reorganization in one of the best pursuits of its stakeholders. Kodak expects to finish its U.S.-based mostly restructuring throughout 2013.
The Firm and its Board of Administrators are being suggested by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. As well as, Dominic DiNapoli, Vice Chairman of FTI Consulting, will function Chief Restructuring Officer to help the administration workforce as to restructuring issues in the course of the chapter eleven case.
Extra details about Kodak’s Chapter eleven submitting is accessible on the Web at www.kodaktransforms.com. Info for suppliers and distributors is out there at (800) 544-7009 or (585) 724-6100.
Kodak might be submitting month-to-month working reviews with the Chapter Courtroom and in addition plans to submit these month-to-month working studies on the Investor Relations part of Kodak.com. The Firm will proceed to file quarterly and annual reviews with the Securities and Change Fee, which may even be out there within the Investor Relations part of Kodak.com.
Supply: Kodak Transforms
Supply: Kodak Transforms