Eastman Kodak Company (OTCMKTS:EKDKQ) may exit bankruptcy by July
Erstwhile Camera manufacturer Eastman Kodak Company(OTCMKTS:EKDKQ) has said it may emerge from bankruptcy by July as commercial imaging business due to its creditors. In the bankruptcy filed in Manhattan court, the company has said it may issue fresh stock with majority given to second-lien note holders. The holders include D.E Shaw Group, Bennett Management Corp and investment funds P. Schoenfeld Asset Management.
While a new board would be appointed, the new directors may only be identified later. However, the company did not reveal the amount paid to unsecured creditors, to whom the company owes about $2.2 billion.
The company’s bankruptcy plan will be only approved post court’s approval and a vote of creditors. The firm must primarily gain approval from the court on its bankruptcy plan and the risks involved in it. The hearing on disclosure statement is likely to happen in June.
The company had been unable to adopt modern technology and is one of the casualties of digital age. It had liabilities to the tune of $6.75 billion of liabilities entering in Chapter 11 reorganization. The bankruptcy plan comes a day after securing a deal for selling the document imaging and personalized imaging business to a pension fund based in UK for a whopping $650 million.
The fund even agreed for paying $2.8 billion claim against Kodak, helping in resolving one of the largest unsecured claim in bankruptcy. The firm had launched its first camera way back in 1888 and invented the digital camera.
The firm is hoping to pull everything on the side and focus on selling printing equipment to businesses. It also estimated that the earnings before interest, tax, depreciation and amortization will increase to $494 million in 2017, a two and half fold increase from the current level.
The revenue is expected to climb to $3.2 billion in 2017, from $2.5 billion in the current year.
Shares of the company tumbled 68% in opening session at $0.124.
Tags: Eastman Kodak Company (OTCMKTS:EKDKQ), EKDKQ