History still in the making…
On Tuesday Kodak announced a new five-year senior secured credit of $200 million. Added this to the previously announced $695 million credit and Kodak is ready to emerge from bankruptcy. This new credit line will be managed by Bank of America Merrill Lynch, Barclays and J.P. Morgan.
If your read some of the headlines elsewhere on the internet, you will see they mention that Kodak had a 49% improvement for the second quarter of 2013 over the second quarter of 2012. The truth is that Kodak had a loss of $157 million for the s2nd quarter of 2013. That was compared to the $306 million loss reported in 2nd quarter of 2012. Kodak is staking its future on the graphic imaging business. Kodak’s Graphics, Entertainment and Commercial Films (GECF) reported a $5 million loss for 2nd quarter 2013. The Digital Printing and Enterprise (DPE) group reported a $13 million.
Kodak had proposed to set aside a fund of $49 million for environmental clean up at Eastman Business Park. The federal Environmental Protection Agency (EPA) had planned to object that funding in the bankruptcy court. Now NY State says that they will add another $50 million to the fund if it is needed. Plus any amount over that, NY State and Kodak will split 50-50. Because of the new agreement, the EPA has decided not to object in the bankruptcy court.