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Kodak seeks more time for bankruptcy plan

Rochester Business Journal
January 28, 2013

Eastman Kodak Co. wants its lenders to give it more time to develop its plan to emerge from bankruptcy. The company also expects to complete the sale of its digital imaging patents this week.

Kodak provided the update in a filing Monday with the U.S. Securities and Exchange Commission. The company has begun seeking consents to two amendments from the lenders under its existing Debtor-in-Possession Credit Agreement.

The first amendment would extend the requirement under the agreement for when Kodak must file—from Feb. 15 to April 30—a Chapter 11 plan and disclosure statement with the U.S. Bankruptcy Court, in light of Kodak’s previously announced junior debtor-in-possession facility, which was approved by the Bankruptcy Court on Jan. 24, the filing states.

The second amendment is designed to permit the incurrence of the Junior DIP Financing and make related changes, the filing states. It would become effective upon the closing of the Junior DIP Financing, subject to the term loans under the existing DIP Credit Agreement having been paid in full.

The second amendment would, among other things, extend the maturity date of the facility from July 20 to Sept. 30, to match the maturity of the Junior DIP Financing.

The first amendment is subject to approval by a majority of the existing revolving and term loan lenders under the DIP Credit Agreement. The second amendment is subject to approval by the existing revolving lenders under the DIP Credit Agreement.

Kodak also disclosed it expects to consummate its patent sale agreement with Intellectual Ventures Fund 83 LLC on or about Feb. 1. Pursuant to the terms of the DIP Credit Agreement, Kodak will apply 100 percent of the net cash proceeds from the sale of the patents and 75 percent of the net cash proceeds from licensing certain patents to repay amounts outstanding under the term loan facility under the existing DIP Credit Agreement.

As a result, Kodak expects to pay $418.7 million of the proceeds to repay the existing term loans and to retain $108.3 million, pending closing of the Junior DIP Financing, when the remaining balance outstanding under the existing term loans will be repaid.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.


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