Kodak has announced that it signed an agreement with the U.K. Kodak Pension Plan to hand over its personalized and document imaging businesses.
Kodak is on the verge of emerging out of bankruptcy. The company has filed for Chapter 11 protection in January 2012, but it has announced plans to revive its business shortly after that.
After entering bankruptcy protection, Kodak has quickly started to solve its financial problems
The company has been looking to sell whatever it’s got, in order to pay its debts and make a successful comeback to the digital camera market. After JK Imaging reached a deal to purchase the brand, the company announced that it will release several cameras by the end of 2013.
Additionally, Kodak licensed 1,100 patents to a number of companies, which have paid $527 million and have dropped all lawsuits against the digital camera maker.
Moreover, the company has been present at the P&E Show 2013 in China, where it displayed a PixPro S-1 Micro Four Thirds system and a new mirrorless camera among others.
Kodak starts packing as it will emerge out of bankruptcy following multi-billion dollar agreement with UK Pension Plan
The next step in getting rid of the bankruptcy status is to pay the debt towards the UK retirees. It appears that the Kodak Pension Plan is owed $2.8 billion, therefore the company has decided to sell the personalized and document imaging businesses.
By clearing its pension engagements, Kodak will solve the matters with the corporation’s biggest creditor. Additionally, Kodak has obtained other values and some cash from the pensioners. It is believed that these assets along with the cash are worth $650 million, an amount which will be used to exit Chapter 11.
Kodak had no other way than to sell its personalized imaging and document imaging subsidiaries. The UK Kodak Pension Plan is its largest creditor, which will have to decide the businesses’ future soon. The retirees can sell or even keep the aforementioned businesses, as this matter is no longer of Kodak’s concern.
Analysts say that the $2.8 billion debt was the last thing keeping the company in bankruptcy, therefore Kodak should exit this phase anytime soon.
Brother Industries deal is off
People wondering what will happen to the agreement previously reached with Brother Industries should know that Kodak had a special clause written in the contract.
It is said that the deal would cease to exist in the eventuality of a so-called “bundled transaction”. Since the UK Kodak Pension Plan agreed to buy two of Kodak’s affairs, the Brother agreement is off and will not seek approval from the regulators.