ROCHESTER (dpa-AFX) - Eastman Kodak Co. (EKDKQ.PK) said Wednesday that it has received approval from U.S. Bankruptcy Court Judge Allan Gropper of the Southern District of New York for the company's previously announced commitment from the Steering Committee of the Second Lien Noteholders Committee for interim and exit financing.
The financing, which authorizes Kodak to borrow up to $844 million, strengthens the company's position to successfully execute its remaining reorganization objectives, finalize its Plan of Reorganization, and emerge from Chapter 11 in mid-2013, Kodak noted.
The financing is predicated on certain conditions, including the successful completion of the sale of Kodak's digital imaging patent portfolio for no less than $500 million. The Bankruptcy Court recently approved the sale of this portfolio for $527 million, and the completion of the sale is expected next month.
Upon meeting certain additional conditions, the approved financing also provides Kodak the option of converting up to $644 million of the loans into exit financing due five years after emergence. The additional conditions include the consummation of a Plan of Reorganization by September 30, 2013, the resolution of the company's U.K. pension obligations, and the successful completion of all or a portion of the sales of Kodak's Document Imaging and Personalized Imaging businesses, as detailed in the agreement. Kodak continues to make progress toward these objectives.
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