
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: July 2, 2013
Partner
201-896-7095 jglucksman@sh-law.comIconic 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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!