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Kodak strikes post-bankruptcy loan deal with banks

Kodak strikes post-bankruptcy loan deal

Eastman Kodak Co said on Thursday that it had reached a $895 million financing deal with three Wall Street banks that will help fund its rebirth as commercial imaging business after the former film pioneer emerges from bankruptcy.

Affiliates of JPMorgan Chase & Co , Bank of America Corp and Barclays Plc will be joint lead arrangers for a senior secured term loan package of $695 million. The three banks will also arrange an asset-based revolving credit facility of $200 million.

Kodak will use the money to pay off loans that funded its bankruptcy as well as for working capital once it exits bankruptcy, which is expected later this year.

clipboard01 kodaklogofinal 291206321372 640x3603 Kodak strikes post bankruptcy loan deal with banks

Saving face

The loan agreement is contingent on approval from the U.S. Bankruptcy Court in Manhattan, which is overseeing the Chapter 11 reorganization of Rochester, New York-based Kodak.

On Wednesday Kodak said it would seek court approval for a $406 million rights offering, selling 34 million shares, or 85 percent of the equity in the reorganized company.

Proceeds from the rights offering would go to repay various creditors, including more junior second-lien creditors that would no longer receive equity in the reorganized company.

Creditors committed to investing in the rights offering are GSO Capital Partners, BlueMountain Capital, George Karfunkel, United Equities Group and Contrarian Capital, Kodak said.

Kodak sought protection from creditors in January 2012 because of high pension costs and after falling many years behind rivals in embracing digital technology in its photography business.

The company has since sold a variety of assets.

The case is In re: Eastman Kodak Co, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.

[source:tech2]

6 comments

  1. Wavatar

    Or even the ticker indication of the organization they are part of?

    Wendy’s

    Coke

    Lays

    Manufacturers

    Cattepillar

    Ford

    Bank of the usa

    Kellogs

    Lean Cuisine

    News Corp

    Country Fresh (milk)

  2. Wavatar

    im attempting to un-install my all-in-one kodak printer however it keeps giving error code 1706 no vaild sourece found how do i fix this

  3. Wavatar

    Sometimes to have an insurance provider so we have a lot of clients with houses or automobiles funded through Bank of the usa. For a long time, we’ve always sent insurance verifications for their Atlanta address. Now, our mail is returning after that without any sending address listed. I have checked the website and attempted calling several 800 amounts and also have been not able to locate a new address to sent verifications to. Does anybody know where Bank of the usa went? HELP!!!

    I want the address for his or her insurance verification center, anybody obtain that info?

  4. Wavatar

    I wish to purchase a new camera, and it is Kodak, but Among the finest to understand if that is a great brand.

  5. Wavatar

    what exactly are they please reply fats typing a 6 paged essay

    UGHH.

  6. Wavatar

    I’m presently an underwriter for mortgages, but I must enter into investment banking. What exactly are good quality investment banks in Chicago that don’t need a degree from the top business school ? (I finished Western Michigan College having a 3.9 gpa)

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