Kodak: Court OKs $2.8 billion U.K. pension plan claims settlement

By Jim Witters

Wilmington, Del., June 20 - Eastman Kodak Co. received bankruptcy court approval for a comprehensive settlement with its largest creditor - U.K. Kodak Pension Plan - that settles about $2.8 billion in claims, according to a Kodak press release issued June 20.

Under the agreement approved by the U.S. Bankruptcy Court for the Southern District of New York, Kodak's personalized imaging and document imaging businesses will be spun off under new ownership to KPP for cash and non-cash considerations of $650 million.

The sale is expected to close after confirmation of Kodak's Chapter 11 plan of reorganization, according to the press release.

"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," said 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, "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."

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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