Kodak has announced that it will sell its document imaging business to Brother Industries for $210 million, thus continuing its restructuring process.
Kodak filed for bankruptcy in early 2012. Tough times were to be expected for the company, but it seems like everything is going better than first thought.
In February 2013, the company has licensed many of its patents to a consortium of corporations, including Apple, Microsoft, Google, Samsung, and Facebook among many others. The digital camera manufacturer has received about $527 million from this sale.
Kodak agrees document imaging business sale to Brother Industries for $210 million
Now, Kodak is back with another sale. Brother has signed an agreement to purchase Kodak’s document imaging business for an amount of about $210 million. The money will be paid in cash, while the buyer will receive everything that is related to scanners and enterprise-related software and services.
Brother Industries is a printer manufacturer. The company finds itself among the top makers of printers and fax machines in the world.
Kodak is on track to emerge out of bankruptcy in 2013
Kodak is currently going through a transition phase. In March 2013, the company has reported a $1.38 billion loss for the 2012 financial yet. However, CEO Antonio claims that the digital camera maker will emerge out of bankruptcy in mid-2013.
Perez has reiterated his stance and has announced that selling the document imaging business is a necessary step towards Kodak’s emergence. The sale has been agreed by both parts, but it will require the approval of the regulators. The company’s CEO is confident that the two parties will be allowed to complete the transaction.
Transaction expected to be approved this June
Nevertheless, Kodak will take part in a special hearing sometime in late April. The company’s legal team will ask the US Bankruptcy Court to admit the request, while the judges will most likely approve the trade by the end of June.
Sources suggest that the company requires $600 million in order to shed its bankruptcy status. About $400 million more will be needed to finalize the procedures, but Perez is feeling self-assured that he will meet the goals in a few months.
The President of Document Imaging, Dolores Kruchten, wants to guarantee a fluent transition to Brother Industries for the customers. The buyers will keep getting support and customer service throughout the whole time, she concluded.