Eastman Kodak Co. struck a $793 million in financing deal from four lenders to emerge from bankruptcy, according to a person knows about the deal.
JPMorgan Chase & Co., UBS AG, GSO Capital Partners, and Centerbridge Capital Partners have participated in the funding, said the source, who requested not to be named since the talks are private. The deal with the second-lien creditors still needs the approval of the court.
The funding includes a condition to sell Kodak’s patent portfolio for not less than $500 million, the sale of certain business units and the resolution of pension issues in U.K., the source said. The company has shed almost 4,000 jobs this year because of its restructuring.
Kodak CEO Antonio Perez has been selling off parts of the business to financially support a turnaround after filing for Chapter 11 bankruptcy in January. The company plans to leave bankruptcy between January and June next year.
There was also another group of creditors who proposed to provide the financing, which consists of term loans such as up to $567 million that can be used for bankruptcy exit provided that conditions are fulfilled, the source said.
The noteholders are opposed to the company’s request in court to extend its exclusive right to file a restructuring plan. They want to propose their own reorganization plan for Kodak.
According to Kodak’s spokeswoman Stefanie Goodsell, the objection from the group of minority noteholders did not came as a surprise them.
Kodak, which invented the digital camera about 40 years ago, filed for bankruptcy because it did not find a way to stay profitable throughout the rise of digital photography. It spent more than $3 billion on reorganization prior to bankruptcy, which includes payouts to lay off 47,000 workers since 2003, and shutting down 13 factories that manufactured film, chemicals and paper, and 130 photograph laboratories.
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