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-   -   Kodak files Chapter 11 emergence plan, cancelling existing shares (http://forums.macnn.com/113/tech-news/500265/kodak-files-chapter-11-emergence-plan/)

 
NewsPoster May 1, 2013 03:20 PM
Kodak files Chapter 11 emergence plan, cancelling existing shares
Eastman Kodak has filed its latest plan to exit from <a href="http://macnn.com/rd/284716==http://www.electronista.com/articles/13/03/11/2012.loss.double.2011.fourth.quarter.losses.nearly .the.same.as.2010/" rel='nofollow'>Chapter 11 bankruptcy</a> that gives ownership of the venerable company to unsecured creditors and bond holders. Second-lien note holders will receive 85 percent of common stock in the company, worth nearly $374.85 million. Unsecured creditors will be awarded the remaining 15 percent of shares.<br />
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The pool of unsecured creditors are owed as much as $2.2 billion, with the share award to the class worth approximately $66.15 million. Also in the "unsecured creditors" group are Kodak retirees, an assembly owed $635 million. Current shareholders will lose the shares they hold, and will be awarded nothing under the Chapter 11 plan.<br />
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A sottement announced earlier this week is giving control of Kodak's personalized imaging and document imaging business to Kodak's UK pension plan, rather than an <a href="http://macnn.com/rd/284715==http://www.electronista.com/articles/13/04/15/sale.pending.regulatory.bankruptcy.approval.could. get.a.better.offer/" rel='nofollow'>outright sale to Brother</a>.<br />
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"We now have a clear path forward for Kodak, and we are positioning the company for a profitable and sustainable future," said Kodak Chief Executive Officer Antonio M. Perez. He added that the filing is "a major milestone in our reorganization."<br />
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The company expects to exit Chapter 11 status in the third quarter of 2013, with a projected valuation of $441 million. By the end of 2014, Kodak claims to be able to grow its worth to $581 million, and up to $1.625 billion after four years.<br />
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To escape from the financial pit, the company plans on focusing on the strongest segment it has left -- digital printing. At the end of 2012, the company <a href="http://macnn.com/rd/280805==http://www.electronista.com/articles/12/08/23/inkjet.printer.business.to.remain.in.kodak.hands/" rel='nofollow'>announced</a> it would sell its print-film business and several other related businesses to raise additional funds. The imaging giant made the move public in the last days of its patent portfolio auction. <br />
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Jusge Allan Gropper, the judge overseeing the Kodak bankruptcy proceedings, <a href="http://macnn.com/rd/280806==http://www.electronista.com/articles/13/01/11/approval.paves.the.road.to.an.additional.830.milli on.in.financing/" rel='nofollow'>approved</a> a <a href="http://macnn.com/rd/277120==http://www.electronista.com/articles/12/12/19/microsoft.samsung.among.benefitting.parties/" rel='nofollow'>$525 million patent sale</a> to assist the company in successfully navigating the Chapter 11 process. The completed sale allowed the company to obtain an additional $830 million in financing on top of the patent proceeds.
 
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