Kodak Takes Next Steps Toward Emergence; Apple Appeals Ruling
Eastman Kodak Company outlined its next steps toward a successful emergence from Chapter 11 reorganization as a company primarily focused on commercial, packaging and functional printing solutions and enterprise services. Accordingly, the company has initiated sale processes for its Personalized Imaging and Document Imaging businesses.
Kodak believes that the sale of these assets, as well as continued cost-reduction initiatives, curtailment of its legacy liabilities, and the monetization of the company’s digital imaging patent portfolio, will be significant milestones toward completing the company’s reorganization and emergence from Chapter 11 during 2013.
“The initiation of a process to sell the Personalized Imaging and Document Imaging businesses is an important step in our company’s reorganization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence,” said Antonio M. Perez, chairman and CEO. “In addition, we continue our initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability.”
Kodak noted that in addition to the commercial, packaging and functional printing and enterprise services businesses, it also continues to own and operate the Consumer Inkjet, Entertainment Imaging, Commercial Film and Specialty Chemicals businesses. Kodak said it would move forward as quickly as possible and has targeted completing these transactions in the first half of 2013. Lazard is adviser to Kodak in the sale process.
In accordance with its prior announcement, the company is continuing discussions with parties with respect to the potential sale of its digital imaging patent portfolio. The company reiterates that it has made no decision to sell the portfolio and Kodak may, in consultation with creditors, retain the portfolio as an alternative source of recovery for creditors. “As we move forward with the Chapter 11 process, we are focused on delivering the highest value to our creditors so that we can emerge as a sustainable, profitable company that continues to meet the needs of our customers,” Perez concluded.
Separately, a Bloomberg/BusinessWeek article noted that Apple is taking steps to appeal Judge Allan Gropper’s decision to give Kodak ownership of its approximately ten patents. Apple is contesting the ownership of two patents.
These patents are part of the more than 1,000 patents Kodak put up for sale when it began its restructuring. When Apple laid claim to two patents, Kodak filed a suit. Judge Gropper’s decision said that since Apple waited to long to assert its right to the two patents, they would fall to Kodak’s ownership.
To read the Bloomberg/BusinessWeek article, click here.
Previously on abfjournal.com: