Posted by Elizabeth Austin
March 12, 2014
On August 23, 2013, Bankruptcy Judge Allan Groper, approved the Eastman Kodak Company (“Kodak”) First Amended Joint Chapter 11 Plan of Reorganization, which enabled Kodak to emerge from bankruptcy as a totally new company. In re Eastman Kodak Company, et al, Chapter 11 Case No. 12-10202(ALG), Docket I.D. No. 4966. Gone are the cameras, film sales and consumer photo developing that made Kodak a household name. The new company focuses on printing technology, commercial printing products and production of touch screen sensor components.
Kodak spent 20 months in bankruptcy restructuring its traditional film business and creating its new business. More importantly through the bankruptcy, Kodak was able to shed about $4.1 billion of debt and eliminate all of the shareholder interests. The Plan provided for a recovery to unsecured creditors of approximately four to five cents on the dollar. Additionally, creditors were also offered the opportunity to buy stock in the new company through a rights offering procedure that had been approved by the bankruptcy court on June 26, 2013.