Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Kodak Nears Bankruptcy Exit Following Deal with U.K. Pension Plan
Author: Joel R. Glucksman
Date: May 10, 2013
Key Contacts
Back
Kodak nears bankruptcy exit following formal bankruptcy proceedings to sell its assets to a United Kingdom pension fund.
Under the terms of the agreement, photography pioneer Kodak will sell its document and personal imaging businesses to its British pension fund for $650 million in cash and non-cash assets. The pension fund would also pick up 3,200 full-time Kodak employees, USA Today reports. In return for selling the assets, the pension fund will drop its $2.8 billion claim against Kodak, currently the largest unsecured claim the company faced following its demise.
The agreement, if approved by the U.S. Bankruptcy Court of Manhattan, will pave the way for the company to emerge from bankruptcy proceedings. Lenders required that Kodak sell its document and personal imaging units for a minimum of $600 million before they would agree to extend financing for the company to exit proceedings.
“In one comprehensive transaction, Kodak will realize its previously announced intention to divest its personalized imaging and document imaging businesses and settle its largest legacy liability,” said Antonio Perez, Kodak’s chairman and chief executive, according to the New York Times.
Kodak filed for bankruptcy law protection under Chapter 11 of the Bankruptcy Code in January 2012 as more consumers turned away from roll-up film and toward the digital photography industry. Since that period, the company has been attempting to sell off its assets, and made a deal with a consortium of technology companies to sell 1,100 digital imaging patents for $525 million. However, the amount was much less than expected. Once Kodak officially emerges from proceedings, it plans to focus its attention on its commercial imaging unit, which includes graphic communication, film and specialty chemical products, Reuters reports.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, 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 Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
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.