Court Approves Kodak’s Comprehensive Settlement with U.K. Pension Plan
ROCHESTER, NY—June 20, 2013—The U.S. Bankruptcy Court for the Southern District of New York approved Kodak’s previously announced comprehensive settlement agreement with the U.K. Kodak Pension Plan (KPP), the company’s largest single creditor with respect to its Chapter 11 Plan of Reorganization. In approving the agreement, the Court described it as “a critical step forward in Kodak’s effort to consummate its Plan of Reorganization.” With the agreement, announced on April 29, Kodak’s Personalized Imaging (PI) and Document Imaging (DI) businesses will be spun off under the ownership of KPP.
“We have been working in close cooperation with KPP to achieve a smooth transition for our PI and DI employees and customers to a new owner—one who clearly recognizes the value of these businesses and intends to help them grow and succeed,” noted Antonio M. Perez, Kodak chairman and CEO. “We look forward now to completing our reorganization and emerging as a company focused on Commercial Imaging.”
Steven Ross, independent chairman of the Kodak Pension Plan, said, “I am delighted that the court has approved the settlement involving the transfer of the PI and DI businesses to KPP. This is by far the best option available for KPP, which is acquiring two profitable businesses that will provide substantial ongoing income to the fund. The income that these two businesses generate will enable KPP to remain outside of the Pension Protection Fund (PPF) and to offer our members a new pension plan that will provide all of them with better benefits than they would have received in the PPF. I am pleased to say that the feedback the Trustees are receiving from members at presentations currently being held around the United Kingdom is highly encouraging. I look forward to working alongside the management and staff of the PI and DI businesses—who have remained loyal and focused during this process—as we build a firm future for them and for our members.”
The consummation of the KPP settlement is expected to occur after confirmation of the company’s Plan of Reorganization. Earlier this week, Kodak proposed rights offerings, an agreement with New York State on Eastman Business Park, and the engagement of arrangers for new financing, all key steps toward the confirmation of the company’s Plan of Reorganization and emergence.
Kodak is transforming into a B2B company focused on its Commercial Imaging business. Kodak will be centered on commercial, packaging and functional printing solutions and enterprise services, markets in which it offers customers advanced technologies that give them a competitive edge. The company also offers leading products and services in Entertainment Imaging and Commercial Films.
About Kodak’s Personalized Imaging Business
The Personalized Imaging business leverages Kodak’s unique imaging heritage, expertise and ongoing innovation to provide customers and end-consumers with high-quality products and services to meet their individual needs. The Personalized Imaging business consists of Retail Systems Solutions, the world leader in retail photo kiosks and dry lab systems, offering retailers a competitive advantage in the photo services market; Paper & Output Systems, offering photo specialty retailers, professional and wholesale labs, and photographers the broadest portfolio of traditional photographic paper and workflow solutions; Film Capture, offering consumers and professionals an award-winning range of still-camera film products; and Event Imaging Solutions, offering theme parks and other venues a total solution in souvenir photo operations.
About Kodak's Document Imaging Business
Kodak's Document Imaging business enables customers to capture and manage valuable information from electronic and paper documents. Our solutions include award-winning scanners and capture software, information workflow software, an expanding range of professional services, and industry-leading service and support. From small offices to global operations, Kodak has the solutions to automate your business processes and intelligently deliver the information your enterprise needs.