Eastman Kodak Company filed for Chapter 11 bankruptcy around a year ago. The company sold off around 1,000 of their digital imaging patents last month. 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.
Kodak’s digital imaging portfolio sold for over $525 million from several large tech companies like Apple, Google, Microsoft, RIM, Facebook, HTC, Adobe, Amazon, etc. Kodak will be using $640 million of the $843.7 million to help finance the company’s exit from bankruptcy. Some of the money will go towards an earlier bankruptcy loan that the company borrowed from lenders like JP Morgan and GSO Capital Partners for $950 million.
Below is a statement from Kodak CEO and Chairman Antonio Perez:
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.