Tagged: Kodak

Kodak expects to emerge from bankruptcy as early as July according to the company’s reorganization plan filed late Tuesday.

The 78-page document filed with the US Bankruptcy Court, states the company expects to issue new stock to some of its creditors for almost $3 billion of unsecured debt. But under this plan, current shareholders would see their stock become worthless. 

Analyst George Conboy, President of Brighton Securities says that’s pretty standard for a company in Kodak’s position.

Kodak has struck up a deal that will see up to 70 jobs created in Rochester. The company has entered a deal to manufacture and supply touch sensors for Texas-based company UniPixel.

The agreement will see Kodak and UniPixel open a new manufacturing facility in Eastman Business Park later this year, with $24 million set aside to improve and equip the 100,000 square foot facility.

Kodak looks set to sell its document imaging business for $210 million. The company has reached a tentative deal with Brother Industries that would see them take over operation of the portfolio of scanners, capture software and services.

In addition, Japan-based Brother would also assume the business’ deferred service revenue liability which totaled approximately $67 million at the end of 2012.

Kodak will look for new directors of the Board of Directors as part of its reorganization plan expected to be filed in April.

The company announced Friday that, along with committees of investors, it will jointly hire a firm to begin identifying new directors.

Analyst T.C Lewis says Kodak will come out of bankruptcy a shadow of the company it once was, and the board and management team will have to reflect the needs of that smaller operation.

Lewis says even CEO Antonio Perez’s position may need to be re-thought.