Kodak gets US$793m lifeline

Last updated 13:56 13/11/2012

Relevant offers


Thanksgiving advertising can make turkeys out of US brands If women want to reduce the gender pay gap, they have to fight for it Company director hid in wardrobe after crashing her car while drunk Intel employee paid friend to call in bomb threat so he didn’t have to go to work Big brands don't mind live Periscope stumbles to reach millennials NZ banks no exception to sweeping job cuts, branch closures Paris attacks: Europe's weaponmakers set to reap US$50m windfall Commonwealth Bank to pay out A$80m in refunds to customers Hilton hotel group payment systems hit by malware Jeff Bezos' space company's New Shepard landing hailed a breakthrough

Struggling photo pioneer Eastman Kodak said on Monday that it has reached an agreement to borrow US$793 million ($970 million), an important step in letting it leave bankruptcy protection in the first half of next year.

The deal is contingent on Kodak being able to sell its patent portfolio for at least US$500m. The company has been trying to sell that asset for more than a year. In a statement, Kodak says it is "confident it will achieve" that requirement.

"The additional liquidity from this financing will enable Kodak to accelerate its momentum as we continue to successfully execute on our reorganization objectives and emerge in the first half of 2013," CEO Antonio M Perez said in a statement.

Under the deal, Kodak would borrow the money from a private investment firm, Centerbridge Partners; GSO Capital Partners, which is a subsidiary of The Blackstone Group; and banks JPMorgan Chase and UBS. The loan would consist of US$476m in new loans and US$317m in roll-overs of old debt. There's a provision to convert US$567m into "exit financing", a prerequisite for emerging from Chapter 11 protection.

Kodak filed for bankruptcy protection in January after struggling to adapt to the world of digital photography.

Ad Feedback

- AP

Special offers

Featured Promotions

Sponsored Content