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Kodak closes on $848 million financing agreement

Rochester Business Journal
March 22, 2013

Eastman Kodak Co. closed Friday on its previously announced $848 million financing with members of the steering committee of the second lien noteholders and other holders of Kodak’s senior secured notes.

The company said the new financing, along with the amendment and restatement of Kodak’s existing debtor-in possession credit agreement, strengthens its position to execute its remaining reorganization objectives and successfully emerge from Chapter 11.

Under the new financing, Kodak borrowed some $473 million and converted $375 million in senior secured notes into loans.

Proceeds from the financing, together with proceeds from previously announced intellectual property transactions, will be used to repay the term loans outstanding under Kodak’s existing debtor-in-possession credit agreement, make an adequate protection payment to holders of the senior secured notes and support ongoing business activities, the company said.

“This is another important step toward our emergence as a profitable and sustainable commercial imaging company,” Chairman and CEO Antonio Perez said in a statement. “We are now working to finalize our plan of reorganization and complete the remaining work required for us to emerge as a stronger company, focused on ongoing innovation to meet our customers’ needs.”

Under the financing agreement, Kodak is required to file its reorganization plan with the court by April 30. The company said it is on track to achieve that target date.

Kodak filed for Chapter 11 bankruptcy on Jan. 19, 2012.

The company spent nearly $1.1 billion on reorganization and restructuring costs in 2012. It cut its global workforce by some 4,000 to 13,094 and reduced its Rochester-area employment by 31 percent, or nearly 1,600.
 
Kodak headed into 2013 with 3,542 employees here, down from 5,129 a year ago.

(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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