Oct 10 Bankrupt Eastman Kodak Co said
on Wednesday it was ending retiree healthcare and survivor
benefits at the end of the year, allowing it to resolve a $1.2
billion liability, one of its biggest obligations.
The benefits, which include medical, dental, life insurance
and survivor income benefits, will end December 31.
Kodak will give retirees a $635 million unsecured claim, a
$7.5 million cash payment to support initial administration and
benefit obligations, and a $15 million allowed administrative
claim that would have priority in reorganization proceedings.
The deal with the official committee representing retirees
in Kodak's bankruptcy proceedings does not affect pension
In a statement, Kodak said the move will improve its
liquidity even as it acknowledged "this action will pose
challenges for retirees." But the company said the step was
necessary to allow Kodak to emerge from bankruptcy protections
"as a profitable, sustainable company."
Kodak has been paying about $10 million per month to provide
Kodak filed for Chapter 11 bankruptcy in January. The
Rochester, New York, company is a pioneer of photography but
struggled to adapt to the digital age, and is shifting its focus
toward its commercial packaging and printing business.
The bankruptcy is in Re: Eastman Kodak Co. et al, U.S.
Bankruptcy Court, Southern District of New York, No. 12-10202.