Kodak Receives Court Approval of Completed DIP Financing
Eastman Kodak Company announced that Judge Allan L. Gropper of the U.S. Bankruptcy Court for the Southern District of New York entered a final order approving the company’s debtor-in-possession (DIP) financing for $950 million between Kodak and its lenders and second lien bondholders.
The company also confirmed that it has received court approval to end its sponsorship deal for the Kodak Theatre, which hosts the Academy Awards. Kodak entered into a $74 million deal for naming rights of the theatre in 2000. The ending of the sponsorship will save the company as it tries to reorganize.
Antonio M. Perez, chairman and CEO, said in regard to the DIP financing: “Today’s agreement is another step towards ensuring that Kodak is positioned to execute on the goals the company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities and enable Kodak to focus on its most valuable business lines.”
Kodak and its U.S. subsidiaries filed to reorganize its U.S. business under Chapter 11 on January 19. Non-U.S. subsidiaries were not part of the filing. The $950 million includes the initial $650 million approved as part of the first-day motions, as well an additional $300 million in incremental availability.
The company and its Board of Directors are being advised by Lazard, AlixPartners and Sullivan & Cromwell.
Previously on abfjournal.com: