the bankrupt photography pioneer, offered to swap $2.7 billion of unsecured debt for shares in a new company in a reorganization plan.
The plan filed yesterday in U.S. Bankruptcy Court in New York followed an April 29 agreement with Kodak’s U.K. pension plan under which the Rochester, New York-based company agreed to spin off its personalized- and document-imaging businesses for $650 million to settle $2.8 billion of claims.
“We now have a clear path forward for Kodak,” Antonio Perez, chairman and chief executive officer, said in a statement yesterday issued by Business Wire. “We are positioning the company for a profitable and sustainable future.”
Under the reorganization plan, current shareholders will be wiped out, while priority claim holders, secured claim holders and second-lien holders, with combined claims of $424 million, will get all their money back. General unsecured debt holders, with claims of $2.7 billion, will get stock valued at $1.6 billion to $2.2 billion under the plan, which is better than they would get if the company were liquidated, Kodak said.
The proposed reorganization plan must be approved by the bankruptcy judge. A hearing will probably occur in mid-June, Kodak said, with a vote by creditors on the proposal to follow.
The bankruptcy case is In re Eastman Kodak Co., 12-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net; Ben Moshinsky in London at bmoshinsky@bloomberg.net.
To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net |
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