Kodak Finance Agreement Approved By Bankruptcy Court
By: WROC-TV
Updated: January 23, 2013
Things are starting to look up for Kodak as the company hopes that this is the year it emerges from bankruptcy.
The Bankruptcy Court has approved $844 million in financing for Kodak to help its emergence process. Part of the requirements for Kodak to receive this financing is the successful sale of the company's patents, which must yield a profit of at least $500 million. We learned that those patents would be sold for around $525 million. The company expects the sale of the patents to wrap up in February. In addition, Kodak must complete and execute their reorganization plan, settle their pension obligations in the U.K. and finalize the sales of the sections of their businesses.
If Kodak meets all of the court's requirements, they will be able to convert up to $644 million of their loans into exit financing to get them out of bankruptcy.
The Bankruptcy Court has approved $844 million in financing for Kodak to help its emergence process. Part of the requirements for Kodak to receive this financing is the successful sale of the company's patents, which must yield a profit of at least $500 million. We learned that those patents would be sold for around $525 million. The company expects the sale of the patents to wrap up in February. In addition, Kodak must complete and execute their reorganization plan, settle their pension obligations in the U.K. and finalize the sales of the sections of their businesses.
If Kodak meets all of the court's requirements, they will be able to convert up to $644 million of their loans into exit financing to get them out of bankruptcy.
