New Development in Kodak's Efforts to Emerge From Bankruptcy
Kodak announced Wednesday that a federal bankruptcy judge has given the go-ahead for the company to seek exit-financing.
This financing authorizes Kodak to borrow up to $844 million. Kodak says that money will allow them to strengthen the company's ability to finalize it's re-organization plan.
The company also recently received the go-ahead to sell it's digital imaging patent portfolio. The completion of that $527 million sale is expected in February.
Chairman and CEO Antonio Perez says the development lays the financial foundation for our Plan of Reorganization.
The beneficiary association in charge of helping pay health benefits to Kodak retirees says it sold its bankruptcy claim from the company.
A statement on the website for the Kodak Retired Employees Beneficiary Association says it sold the $635 million claim for about $70 million.
While the association says the sale was on the high end of expectations, financial analyst George Conboy tells us it's worth about eleven cents on the dollar.
The association has already received seven and a half million dollars from Kodak last year. Another $15 million claim is expected from the company when it emerges from bankruptcy.