Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Eastman Kodak Seeks Approval for $406 Million Rights Offering Upon Exit from Bankruptcy
Author: Joel R. Glucksman
Date: July 2, 2013
Key Contacts
Back
Iconic photography pioneer Eastman Kodak said it will seek court approval for a $406 million rights offering upon exit from bankruptcy proceedings that will give creditors a large equity stake in the company.
Many of its key creditors have already agreed to the backstop, which would enable Kodak to issue 34 million common shares at $11.94 each. The amount is the equivalent to roughly 85 percent of the restructured Kodak. The proceeds from the rights offering would be used to repay various second-lien creditors, who would no longer receive equity after the reorganization, according to Reuters. Kodak noted that an official committee of creditors have already shown their support for the rights offering. Creditors that are pushing for the backstop include GSO Capital Partners, BlueMountain Capital, George Karfunkel, United Equities Group, and Contrarian Capital, Reuters reports.
“This agreement, which serves as a critical component of the capital structure for the emerging Kodak, positions us to comprehensively settle our obligations with our various key creditor constituencies,” Kodak chief executive Antonio Perez said in a statement.
In his statement, Perez also noted that Kodak’s ability to participate in this agreement calls attention to its successful restructuring efforts, and suggests the company has a promising future ahead.
The company amended its plan of reorganization and submitted a motion to the U.S. Bankruptcy Court for the Southern District of New York asking it to approve the backstop commitment. A ruling is expected on the matter on June 25.
Kodak filed for Chapter 11 bankruptcy in January 2012 as a result of rising pension costs and declining profitability as its competitors switched to digital photography platforms. After selling a number of its patents and assets, the company said it hopes to emerge from protection in the third quarter of this year. Upon its emergence from bankruptcy proceedings, Kodak plans to fashion itself as a commercial imaging business.
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Washington, D.C., Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
How Understanding Bankruptcy Trends Can Benefit Your Business
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.