YNN

The transaction helps the Kodak meet one of its key restructuring objectives and is another step forward in successful emergence from bankruptcy.

Kodak retains the right to use the 1,100 patents sold and maintains ownership of more than 9,000 other patents focused on its core business.

The benefits program includes medical, dental, life insurance, and survivor income benefits.

Kodak says it'll pay seven and a half million dollars cash that the Committee of Retirees can use to pay for limited benefit costs for those affected. The company will also provide a $635 million unsecured claim.

The deal does not affect pension benefits.

Kodak said Monday that the move "is one of the many necessary and critical steps" to help it emerge from Chapter 11 bankruptcy.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

"The thing that stands out the most is that the rate of decline of their sales is accelerating precipitously," said Brighton Securities financial analyst Brennan Redmond.

Redmond said if Kodak's sales numbers continue the trend they're on, the company's quarterly sales year over year could be down 60 percent.

"What that means is their customers are leaving them in droves. They haven't been ramping down their organization fast enough to meet the decline in sales, so the losses continue to increase and the cash burn continues to increase," Redmond said.

Kodak's recently filed report shows the company's U.S operations ended August with $345.8 million in cash. That's down 21 percent from July.

Kodak also did not get the cash it was hoping for and needed from the sale of its patents.

The company has been ramping down by selling off businesses and laying off employees. Kodak said that it determined 3,900 positions would be cut this year. Most of those had already happened by the end of September. Many of the remaining 1,200 were told Tuesday.

Analysts say it just may not be enough.

"They had planned on having a big chunk of money to be able to do some restructuring, buy them time, and fund an emergence from bankruptcy. Without that patent sale, it looks increasingly likely that a Chapter 7 liquidation is in Kodak's future."

Redmond said to watch October 15th, when Citigroup could choose to make its financing money due. He says that move would force Kodak into Chapter 7. If it makes it past that, Redmond said it's more asset cuts and layoffs ahead.

Again, the numbers in Kodak's reports are for the U.S. The company says sales are growing worldwide. It still hopes to come out of bankruptcy in the first half of next year.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

The company said it will also continue to own and operate Consumer Inkjet, Entertainment Imaging, Commercial Film and Specialty Film busineses.

With the new focus, Kodak said it has initiated sale processes for its Personalized Imaging and Document Imaging businesses.

"We're not shutting down the businesses, it will just be a different owner with the businesses. Those people will continue to have the work that they have and the ones in Rochester will continue to have their work in Rochester; it will just be a different owner," said CEO Antonio Perez.

The Personal Imaging businesses include 105,000 Kodak kiosks and traditional photographic paper and still camera film products. Scanners and capture software are part of the Document Imaging businesses being sold.

Kodak said it plans on having all of these transactions completed by the first half of 2013.

Kodak CEO Antonio Perez said discussions into the sale of the company's patents is ongoing.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.