History still in the making…
It was a busy week for Kodak.
On Monday Kodak reported a first quarter profit of $283 million. Revenue was down a little less than 10% at $849 million. The quarterly profit includes a $535 million gain recorded on the sale of Kodak’s digital imaging patent portfolio.
We reported here a couple of weeks ago that Kodak had a bid to sell their document imaging group to Brothers Industries. That deal is now off as Kodak got a better deal that includes both the document imaging and personal imaging (AKA film) group. The new deal is from the U.K. Kodak Pension Plan. That will settle pension claims of approximately $2.8 billion from the U. K. retirees and will give Kodak $650 million in cash and non-cash. The pension plan will be able to use the Kodak name for things like film and film camera.
Late on Tuesday Kodak filed a plan to the bankruptcy court for their emergence from bankruptcy. The Bankruptcy court must approve the plan and then Kodak will schedule a vote on the plan by their creditors. Kodak’s plan is to swap $2.7 billion in unsecured debt for shares in a new company. That will make current Kodak stock worthless. Kodak expects to emerge from bankruptcy as early as July.
Steven Ross, the head of the U. K. Pension Plan, was in Rochester Wednesday to reassure employees that will be moving from Kodak to the new, as of yet, unnamed company. Roughly 3,200 Kodak employees worldwide and numerous Rochester area physical assets, such as the million-square-foot Building 205 will be moving to the new company.
Approximately 1,200 retirees with unfunded pensions will be treated as creditors. Those retirees are mostly management level positions. This will not effect retirees that are part of the KRIP plan, which is safe.
Scenes for The Amazing Spider-Man™ 2 have been filmed all week long in downtown Rochester. The scenes are being filmed on Kodak Vison3 Color Negative Film. The scenes being filmed are chase scenes and do not include any of the stars of the movie.
Kodak stock price fluctuated greatly this week. After good news Monday the stock price jumped up to a high of 45 cents per share. Then after analysis of the emergence documents revealed that current stock would be worthless, the stock price dropped to about 9 cents per share. The stock price ended the week at around 15 cents.