Kodak en route to emergence from Chapter 11

The big yellow, Kodak, has overcome one of the final hurdles for its emergence from Chapter 11 bankruptcy proceedings with a key US court backing its plans. Kodak has been in bankruptcy protection of the past 18 months as it battled crushing debts from its generous pension fund and its transition from a film company to a digital business. The company has made public its aim to come out of Chapter 11 later this year, with some analysts mooting September as a possible first date. Now the Bankruptcy Court for the Southern District of New York has supported Kodak’s Plan of Emergence.

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In confirming the Plan, the Court said, “It will be enormously valuable for the Company to get out of Chapter 11, and begin to regain its position in the pantheon of American business.” The Plan also reflects the company’s effective utilisation of the Chapter 11 process to achieve its key reorganisation objectives, including successfully reducing legacy costs, liabilities and infrastructure, exiting or spinning off businesses and assets that were no longer core to its future, and focusing on the company’s most profitable business lines. Antonio Perez, chairman and chief executive officer says, “Today, the Court confirmed Kodak’s Plan of Reorganisation. This critically important milestone marks the final step in the Court process. Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets – such as commercial printing, packaging, functional printing and professional services – with a leaner structure and a stronger balance sheet. “There are additional transactional steps ahead as we complete our Chapter 11 restructuring, but with the Court’s decision today, our emergence is now imminent.”

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