14 DAY TRIAL // Of all the tales of fall from grace, Kodak's story is particularly poignant. The company was the authority on photography and video recording, but is now barely holding onto the flotsam of its once great ship.
Verily, the company has sold or lost almost all of its assets, starting with the photo camera business all the way to, as we've just learned, the document and personal imaging units.
That is to say, Kodak has agreed to surrender control of its scanner and film businesses to UK Kodak Pension Plan. In other words, those two divisions are being spun off under the control of KPP.
In return, Kodak is eliminating $2.8 billion in claims (€2.14 billion) and receiving $650 million in “consideration,” including cash (€496 million).
"The businesses that we are acquiring will deliver long-term cash flows to support the plan's obligations. The financial stability that KPP will provide for the Personalized Imaging and Document Imaging businesses will be beneficial to those businesses' employees, customers and partners," said Steven Ross, chairman of KPP.
Kodak has already received approval from the UK Pension Regulator and should submit plans to a US bankruptcy court today (Tuesday, April 30).
Meanwhile, the deal with Brother, for the sale of scanners, will be superseded, so everything should go smoothly on that end.
"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 M. Perez, Kodak chairman and chief executive officer.
"The KPP transaction moves us past several key hurdles in our reorganization, resolving all potential claims worldwide, assuring continued operations outside of the United States, placing our Personalized Imaging and Document Imaging businesses with a new owner that recognizes their value and is focused on their growth and success, and providing the remaining liquidity we require to emerge from Chapter 11. We are very pleased with the transaction, the value it creates for our stakeholders, and the dedication and creativity of KPP that made it possible to achieve this extraordinary result."