The completion of the sale transaction enables Kodak to repay a substantial amount of its initial DIP loan, satisfy a key condition for its newly approved financing facility, and position its core Commercial Imaging business for future growth and success.
Kodak will receive approximately $525 million, a portion of which will be paid by a group of 12 intellectual property licensees organized by Intellectual Ventures and RPX Corp. Each licensee will receive rights with respect to the digital imaging patent portfolio and certain other Kodak patents.
Eastman Kodak has received and accepted an offer from the Steering Committee of the Second Lien Noteholders Committee for interim and exit financing totaling $830 million in loans. The commitment is superior to, and therefore replaces, the $793 million commitment announced by the company on Nov. 12.
Eastman Kodak has arranged $793 million in financing from certain creditors to emerge from bankruptcy as a "commercial printing company," Bloomberg reported, citing a person familiar with the negotiations.
Kodak’s revenue of $1.018 billion in the third quarter represented a decline of 19 percent from the year-ago quarter. This reduction in part reflects strategic decisions to focus on profitable businesses and accounts. The company’s net loss totaled $312 million for the quarter.
Kodak expects to reduce its workforce by approximately an additional 1,000 employees by the end of 2012. Philip J. Faraci, President, is leaving the company. “Kodak is becoming a more focused and competitively scaled company,” said Antonio M. Perez, chairman and CEO.
Eastman Kodak plans to sell its document imaging and personalized imaging businesses in order to focus on printing and business services. The sale of these units, combined with cost-cutting initiatives and the auctioning of its patent portfolio, will help it emerge from Chapter 11 bankruptcy protection sometime in 2013.
Kodak’s motion was contested by Apple and FlashPoint Technologies, which have asserted “ownership” interests in a small number of the 1,100 patents. The court found that all of the digital capture and imaging patents are the property of Kodak’s estate.
Kodak and Ryobi have signed a statement of cooperation to provide hybrid sheetfed press combining offset and digital technologies in a single system. The Ryobi 750 series presses now have the ability to integrate Kodak Prosper S5 inkjet imprinting systems.
Kodak announced it plans to phase out its dedicated capture devices business—comprising digital cameras, pocket video cameras and digital picture frames—in the first half of 2012. The company will instead expand its current brand licensing program, and seek licensees in these categories.
