Kodak looks to sell business park utility operations for $8.5 million

By Caroline Salls

Pittsburgh, Dec. 21 - Eastman Kodak Co. requested court approval of the proposed $8.5 million private sale of its utility operations at Eastman Business Park to RED-Rochester, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

RED-Rochester is controlled by utility company Recycled Energy Development, LLC.

The company said the proposed purchase price is subject to adjustment for taxes and other pro-rated items, the value of inventories and other dedicated spare parts, the rejection of a contract and the amount of specified capital expenditures.

However, Kodak said the purchase price resulting from any adjustments cannot exceed $10.5 million, plus an adjustment of up to $1.5 million for dedicated spare parts.

Kodak said Eastman Business Park is a technology center and industrial complex owned by Kodak. The complex houses the core of Kodak's U.S. business.

The company said many services at the business park that typically are provided by municipalities or public utilities are instead provided through the EBP Utility, which is owned and operated by Kodak.

According to the motion, an increasing proportion of the space at EBP is occupied by independent occupants.

As a result, Kodak said ownership of a "captive" utility is no longer logical to its business.

Under a related utility services agreement, the buyer will provide utilities to Kodak for 20 years.

A hearing is scheduled for Jan. 11.

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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