Kodak receives court approval for CVS deal for services and equipment

By Jim Witters

Wilmington Del., Dec. 7 - Eastman Kodak Co. was granted approval of a new service agreement and a new equipment and consumables agreement with CVS Pharmacy, Inc., according to a Dec. 6 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The settlement resolves disputes between the two businesses and seeks to continue an ongoing relationship "that is a cornerstone to the debtors' retail systems solutions operations," according to the documents.

The agreement assures that CVS - Kodak's largest customer for the RSS operations - will continue as a customer through Dec. 31, 2016. The current agreement between Kodak and CVS is scheduled to expire at the end of this year.

The RSS business allows customers to upload, manipulate, share and print images through Kodak's 105,000 picture kiosks in retail stores.

About 16,000 of the kiosks are in CVS stores.

As of its bankruptcy petition date, CVS owed Kodak roughly $10.87 million. Kodak owed CVS about $11.42 million.

Under the settlement, Kodak and CVS agreed to a setoff of $4.5 million.

CVS will pay the $6.37 million balance within 10 days of the effective date of Kodak's Chapter 11 plan.

CVS will be allowed a general unsecured claim of $18.35 million.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19, 2012 under Chapter 11 case number 12-10202.

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