Bankrupt photographic equipment maker Eastman Kodak Co. (EKDKQ.PK), Monday said it has agreed to sell some assets of its document imaging business to Brother Industries Ltd. for about $210 million in cash.
Brother Industries will assume deferred service revenue liability of the document imaging business, total of about $67 million as of December 31, 2012. Kodak's document imaging business portfolio includes scanners, image-capture software and services to enterprise customers.
However, the closing of the deal is subject to court approval and a period in which Kodak may seek a higher offer for the business that also includes a court-approved auction.
As per the deal, Kodak will seek U.S. Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June.
Kodak, the Rochester, New York-based, 131-year-old company, has been struggling to sell its non-core assets to stay afloat and to transform itself into a digital company from being a film photography company.
Kodak and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York in mid-January last year. Kodak targets exiting bankruptcy in first half of 2013.
EKDKQ is currently trading at $0.2980, down $0.0030 or 1.00%, in the OTC markets.
For comments and feedback: editorial@rttnews.com