Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Court Approves Sale of Kodak's Digital Patents, Eastman Business Park Utilities
Author: Joel R. Glucksman
Date: January 25, 2013
Key Contacts
Back
2013: The Year Kodak emerges from Bankruptcy Protection?
The Eastman Kodak Co. is a step closer to emerging from Chapter 11 bankruptcy protection in mid-2013 after a U.S. court approved the long-awaited sale of its digital imaging patents.
United States Bankruptcy Judge Allan Gropper approved the $527 million purchase of Eastman Kodak Co.’s digital imaging patent portfolio, which will set the company up to meet its goal to exit bankruptcy protection this year. Although the company expressed its disappointment at the final amount of the sale, it does put Kodak in line to accept $830 million in financing from bondholders, the agreement of which was contingent on the sale of its patent portfolio for at least $500 million. The photography pioneer had initially anticipated its patent portfolio would sell for roughly $2 billion.
In addition to the finalization of this sale, the company also entered into another purchasing agreement with Recycled Energy Development, which will purchase and convert the utility infrastructure of Eastman Business Park. The Illinois-based group plans to convert the industrial park’s coal-fired power plant to natural gas, and pay Kodak roughly $8.5 million for the utility assets.
“With the court’s approval of the sale of our digital imaging patent portfolio, we have achieved one of Kodak’s key restructuring objectives, while positioning our Commercial Imaging business for further growth and success, and enabling Kodak to repay a substantial amount of its initial lending,” Kodak officials said in a statement. “We also welcome the court’s approval of the sale of Eastman Business Park’s utilities to Recycled Energy Development, which marks a major step in the park’s revitalization and provides stability for the park and its tenant companies.”
The company said it plans to use some of the proceeds from its patent sale to repay creditors and emerge from proceedings more quickly. Kodak filed for protection under bankruptcy law one year ago, and the road to exit bankruptcy court has been an arduous one for the company.
If you face bankruptcy issues in your business or would like more information on the topic above, please call me, Joel Glucksman, at 201.806.3386.
- Practices: Bankruptcy & Creditors' Rights, Patents, Corporate Transactions & Business, Bankruptcy Litigation
- 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
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
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.