Film stock maker Eastman Kodak Co. (EKDKQ.PK) announced a comprehensive settlement deal with its largest creditor, the U.K. Kodak Pension Plan or KPP, regarding its Chapter 11 Plan of Reorganization.
As per the agreement, Kodak's Personalized Imaging and Document Imaging businesses will be spun off under new ownership to KPP. The company said it will file the agreement with the U.S. Bankruptcy Court.
The settlement agreement provides for the spin-off of Kodak's Personalized Imaging and Document Imaging businesses to KPP for cash and non-cash consideration of $650 million.
The company noted that it will use certain proceeds to support the emergence of the company from Chapter 11 and the growth of its Commercial Imaging business. The agreement also settles about $2.8 billion of claims by KPP against Kodak and certain of its affiliates.
"The KPP transaction moves us past several key hurdles in our reorganization, resolving all potential claims worldwide, assuring continued operations outside of the United States, placing our Personalized Imaging and Document Imaging businesses with a new owner that recognizes their value and is focused on their growth and success, and providing the remaining liquidity we require to emerge from Chapter 11," said Antonio Perez, Kodak Chairman and Chief Executive Officer.
The company said it intends to file a draft Chapter 11 plan with the Bankruptcy Court on April 30, and to seek approval of the KPP settlement and related transactions promptly thereafter, withdrawing the previously-filed motion for the standalone sale of the Document Imaging business.
For comments and feedback: editorial@rttnews.com