Kodak has had a rough go of it lately, filing for Chapter 11 Bankruptcy almost a year ago and selling off its portfolio of more than 1000 digital imaging patents just last month.
But today the centenarian company has some good news to report, as U.S. Bankruptcy Court Judge Allan Gropper of the Southern District of New York has approved Kodak’s $844 million financing led by Centerbridge Partners LP.
This hinged on the sale of Kodak’s massive digital imaging portfolio for more than $500 million, which went through for $525 million from a consortium of tech giants. Buyers included Microsoft, Google, Apple, RIM, Facebook, HTC, Adobe, Amazon, and Samsung, to name a few.
Essentially, the majority of the major players in digital imaging (in a new, mobile world) will have access to the technology in some way. This is obviously good news for just about everyone but Kodak, who originally valued the patent trove at $2 billion.
But it seems the worst part may finally be over.
Here’s what CEO and Chairman Antonio Perez said in a prepared statement:
The Court’s approval of this financing commitment puts Kodak in a strong position to emerge from Chapter 11. This agreement, in conjunction with the recently approved sale and licensing of our digital imaging patent portfolio, lays the financial foundation for our Plan of Reorganization and a successful emergence from Chapter 11 as a profitable and sustainable company. Taken together, these accomplishments, along with other recent developments, such as the resolution of certain of our legacy liabilities, demonstrate the tangible and meaningful progress Kodak is making as it moves through the final phase of its restructuring.
Of the $843.7 million in financing, Kodak says $640 million will be rolled over to help finance Kodak’s exit from Chapter 11 Bankruptcy. Some of the money will also go towards paying off an earlier bankruptcy loan from lenders like JPMorgan Chase & Co. and GSO Capital Partners for $950 million.
The full press release can be found here.
With the slogan “you press the button, we do the rest,” George Eastman put the first simple camera into the hands of a world of consumers in 1888. In so doing, he made a cumbersome and complicated process easy to use and accessible to nearly everyone. Since that time, the Eastman Kodak Company has led the way with an abundance of new products and processes to make photography simpler, more useful and more enjoyable. In fact, today’s Kodak is known...