Kodak may get a shot again with this court click

New Update

ROCHESTER, USA: The U.S. Bankruptcy Court for the Southern District of New York has determined that the Company's Disclosure Statement contains the information necessary to enable creditors to vote on the Plan of Reorganization.


The Court also approved Eastman Kodak Company's recently announced Backstop Commitment Agreement and Rights Offering, as well as an agreement with leading financial institutions J.P. Morgan Chase, Barclays Bank and Bank of America Merrill Lynch to arrange new exit financing and post-emergence facilities of up to $895 million.

Following thia approval of the Disclosure Statement, Kodak can commence the voting process on the Plan of Reorganization as outlined in the filings.

The cornerstone investment, effected through the backstop of the $406 million Rights Offering, demonstrates market confidence in post-emergence Kodak, and will significantly strengthen the funding of Kodak's previously announced Plan of Reorganization. The rights offering will be fully backstopped by GSO Capital Partners, a subsidiary of The Blackstone Group, BlueMountain Capital Management, George Karfunkel, United Equities Commodities Company, and Contrarian Capital.


The Rights Offering, combined with the comprehensive financing package, will enable Kodak, at emergence, to repay its secured creditors under the current senior and junior Debtor-in-Possession loan facilities in full, finance its exit from Chapter 11, and strengthen its capital structure for the future.

"With the approval today of our Disclosure Statement, we look forward to seeking creditor votes for our Plan of Reorganization. An equity commitment from the backstop firms is a strong vote of confidence in Kodak's Plan of Reorganization and in the work we have undertaken during our restructuring," said Antonio M. Perez, Kodak's Chairman and Chief Executive Officer. "Taken together, the combination of the rights offering and the agreement to arrange new financing is extremely important as it enables us to repay the secured creditors; provides the company with a strong, stable capital structure; signals market and creditor confidence in post-emergence Kodak; and demonstrates our ability to generate value for our stakeholders by capitalizing on our leadership in the large and growing markets of commercial digital printing, packaging and functional printing."

Jason New, Senior Managing Director of The Blackstone Group and Head of Distressed Investing for GSO Capital Partners said, "GSO is excited about our strategic investment in Kodak. We have been impressed by Kodak's accomplishments under its restructuring, especially the resolution of significant legacy liabilities. We look forward to a renewed Kodak competing successfully again with market-leading technology and products in the commercial, packaging and functional printing markets it serves."