Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Kodak Receives Final Approval to Make Bankruptcy Emergence
Author: Joel R. Glucksman
Date: September 5, 2013
Key Contacts
Back
Photography pioneer Eastman Kodak Co. has experienced a rough 19 months after seeking Chapter 11 bankruptcy protection of the U.S. Bankruptcy Code. However, it appears that the company is well on its way to emerging from bankruptcy protection and entering the commercial and packaging printing market, as a bankruptcy court recently approved its reorganization plan.
U.S. Bankruptcy Judge Allan Gropper gave the final seal of approval to Kodak, ensuring that it will encounter no more legal hurdles as it seeks to transform itself into a new company. The previous week, a number of retirees, shareholders, and other parties objected to the plan, arguing that they should be entitled to assets in exchange for their stock. However, Judge Gropper reiterated his previous ruling, which allowed for the company’s creditors to receive 4 to 5 cents on the dollar for their investments, and that they’re entitled to be paid prior to shareholders. Despite his ruling, Gropper acknowledged that many parties involved in the bankruptcy will not benefit from the proceedings.
“Many are losing their retirement benefits,” said Gropper, according to USA Today. “Many are finding their recovery as a creditor is just a minute fraction of what their debt is from Kodak. (Kodak’s) decline and bankruptcy is a tragedy of American economic life.”
Kodak said that it is pleased to have finally emerged from its bankruptcy proceedings, and the belt-tightening strategies it undertook during the case have allowed it to emerge with a bright financial future.
“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,” said Kodak CEO Antonio Perez.
Although the company is on pace to formally emerge from proceedings, it’s not out of the woods yet. The Associated Press reports that the U.S. Trustee overseeing the bankruptcy proceedings has filed an objection with the court, challenging the legality of large cash and stock bonuses that Kodak executives are likely to receive when the company exits bankruptcy protection.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- 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
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
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.
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.