Kodak Reaches $2.8 Billion Pact With Pension for Spinoff
By David McLaughlin - Apr 29, 2013 9:06 AM ET
Eastman Kodak Co., the bankrupt photography pioneer, will spin off imaging businesses to its U.K. pension plan in a deal that settles $2.8 billion in claims.
Kodak’s personalized- and document-imaging businesses will be spun off to the pension plan, Kodak’s largest creditor in the bankruptcy case, for $650 million, the company said today in a statement.
Kodak, based in Rochester, New York, plans to file tomorrow in court its plan to exit bankruptcy protection. The spinoff agreement settles about $2.8 billion of claims by the pension plan against Kodak, according to the statement.
Kodak said this month that it had a deal to sell document- imaging assets to Japanese office-equipment company Brother Industries Ltd. (6448) for about $210 million. It said it will withdraw the request filed in court seeking permission to proceed with the sale.
The company is selling businesses to shrink and fund its shift into commercial printing and packaging after seeking Chapter 11 protection in January 2012.
The bankruptcy case is In re Eastman Kodak Co. (EKDKQ), 12-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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