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
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
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.