Kodak successfully convinced the U.S. Bankruptcy Court as well as its creditors that its plan for reorganization is the best solution for everyone. The new company that is emerging from Chapter 11 will no longer be involved in selling film, cameras or anything to consumers. Kodak will focus on commercial imaging markets which includes commercial printing, packaging, functional printing and professional services.
In confirming the Plan, the Court said, “It will be enormously valuable for the Company to get out of Chapter 11, and begin to regain its position in the pantheon of American business.”
Under the reorganization plan, Kodak will also focus on a new technology — touch-screen sensor components for smartphones and computer tablets — and continue producing film for the movie industry.
The Plan also reflects the company’s effective utilization of the Chapter 11 process to achieve its key reorganization objectives, including successfully reducing legacy costs, liabilities and infrastructure, exiting or spinning off businesses and assets that were no longer core to its future, and focusing on the company’s most profitable business lines.
“Today, the Court confirmed Kodak’s Plan of Reorganization. This critically important milestone marks the final step in the Court process,” said Antonio M. Perez, Chairman and Chief Executive Officer. “Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets – such as commercial printing, packaging, functional printing and professional services – with a leaner structure and a stronger balance sheet. There are additional transactional steps ahead as we complete our Chapter 11 restructuring, but with the Court’s decision today, our emergence is now imminent.”
Kodak’s Plan of Reorganization will become effective upon emergence. The company is expected to finalize the remaining aspects of its reorganization, including closing its settlement with the Kodak Pension Plan, and emerge from Chapter 11 on September 3.