Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Kodak Nears Bankruptcy Exit Following Deal with U.K. Pension Plan
Author: Joel R. Glucksman
Date: May 10, 2013
Key Contacts
Back
Kodak nears bankruptcy exit following formal bankruptcy proceedings to sell its assets to a United Kingdom pension fund.
Under the terms of the agreement, photography pioneer Kodak will sell its document and personal imaging businesses to its British pension fund for $650 million in cash and non-cash assets. The pension fund would also pick up 3,200 full-time Kodak employees, USA Today reports. In return for selling the assets, the pension fund will drop its $2.8 billion claim against Kodak, currently the largest unsecured claim the company faced following its demise.
The agreement, if approved by the U.S. Bankruptcy Court of Manhattan, will pave the way for the company to emerge from bankruptcy proceedings. Lenders required that Kodak sell its document and personal imaging units for a minimum of $600 million before they would agree to extend financing for the company to exit proceedings.
“In one comprehensive transaction, Kodak will realize its previously announced intention to divest its personalized imaging and document imaging businesses and settle its largest legacy liability,” said Antonio Perez, Kodak’s chairman and chief executive, according to the New York Times.
Kodak filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code in January 2012 as more consumers turned away from roll-up film and toward the digital photography industry. Since that period, the company has been attempting to sell off its assets, and made a deal with a consortium of technology companies to sell 1,100 digital imaging patents for $525 million. However, the amount was much less than expected. Once Kodak officially emerges from proceedings, it plans to focus its attention on its commercial imaging unit, which includes graphic communication, film and specialty chemical products, Reuters reports.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Author: Jesse M. Dimitro
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.