Kodak Gets Green Light for Financing Agreement

Kodak Gets Green Light for Financing Agreement 300x170 Kodak Gets Green Light for Financing AgreementKodak is one critical step closer to moving beyond its financial woes and ongoing bankruptcy dilemmas.

On Wednesday, the venerable photography brand was given a long-awaited green light. U.S. Bankruptcy Court Judge Allan Gropper approved Kodak’s $844 million financing deal, which Kodak is calling a “significant step toward its emergence from Chapter 11.”

This financing, which authorizes Kodak to borrow up to $844 million, strengthens Kodak’s position to successfully execute its remaining reorganization objectives, finalize its Plan of Reorganization, and emerge from Chapter 11 in mid-2013.

The approved financing also provides Kodak the option of converting up to $644 million of the loans into exit financing due five years after emergence.

“The Court’s approval of this financing commitment puts Kodak in a strong position to emerge from Chapter 11. This agreement, in conjunction with the recently approved sale and licensing of our digital imaging patent portfolio, lays the financial foundation for our Plan of Reorganization and a successful emergence from Chapter 11 as a profitable and sustainable company,” says Antonio M. Perez, Kodak Chairman and Chief Executive Officer. “Taken together, these accomplishments, along with other recent developments, such as the resolution of certain of our legacy liabilities, demonstrate the tangible and meaningful progress Kodak is making as it moves through the final phase of its restructuring.”



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