By Tom Hals
April 30 Eastman Kodak Co said on
Tuesday it expects to emerge from bankruptcy as soon as July as
a commercial imaging business under the control of its
It said in court documents filed with the U.S. bankruptcy
court in Manhattan that it expects to issue new stock with the
majority of it going to its second-lien note holders.
The holders of the second-lien notes include investment
funds P. Schoenfeld Asset Management, D.E. Shaw Group and
Bennett Management Corp.
A new board will be appointed and the company said the new
directors will be identified later.
The company did not say how much it expects to pay its
unsecured creditors, who are owed as much as $2.2 billion, but
they would also receive some shares in the reconstituted Kodak.
Kodak's bankruptcy plan is subject to a vote of creditors
and court approval. Kodak must first gain court approval for its
disclosure statement which describes its bankruptcy plan and the
risks associated with it and is meant to help guide creditors in
their voting on the plan. A hearing on the disclosure statement
is expected in June.
Kodak sought protection from creditors in January 2012 after
it failed to embrace modern technology and became one of the
biggest corporate casualties of the digital age. The company
said it had $6.75 billion of liabilities when it entered Chapter
Kodak's bankruptcy exit plan comes a day after it clinched a
key deal to sell its personalized imaging and document imaging
businesses to its UK pension fund for $650 million. The pension
fund also agreed to give up a $2.8 billion claim against Kodak,
resolving the biggest unsecured claim in the bankruptcy.
Rochester, New York-based Kodak launched its first camera in
1888 and grew to dominate the market for photographic film.
Although Kodak invented the digital camera, it put the project
on the back-burner and spent years watching rivals stake a claim
to the market while physical film sales plummeted.
The company hopes to put all that behind it once it exits
bankruptcy and focuses on selling printing equipment and
services to businesses. It said on Tuesday that it expects its
earnings before interest, tax, depreciation and amortization to
increase to $494 million in 2017 from an estimated $167 million
It expects revenue to climb from an expected $2.5 billion
this year to $3.2 billion in 2017, although that would still be
below the level in 2011, its last full year before it filed for
Prior to its bankruptcy filing, the company had not had a
profitable year since 2007.
Kodak's pink-sheet shares fell 7 percent to 37 cents on
Tuesday. Although the stock has risen from 30 cents per share on
the day Kodak filed for bankruptcy, the company said
shareholders will get nothing and their stock will be canceled
when Kodak exits Chapter 11.
The bankruptcy case is In re: Eastman Kodak Co, U.S.
Bankruptcy Court, Southern District of New York, No. 12-10202.