The U.S. Bankruptcy Court for the Southern District of New York determined that Eastman Kodak’s disclosure statement contains the information necessary to enable creditors to vote on the plan of reorganization.
The court also approved Kodak’s recently announced backstop commitment agreement and rights offering, as well as an agreement with leading financial institutions J.P. Morgan, Barclays Bank and Bank of America Merrill Lynch to arrange new exit financing and post-emergence facilities of up to $895 million.
Following approval of the disclosure statement, Kodak will commence the voting process on the plan of reorganization as outlined in the filings.
The cornerstone investment, effected through the backstop of the $406 million rights offering, demonstrates market confidence in post-emergence Kodak, and will significantly strengthen the funding of Kodak’s previously announced plan of reorganization. The rights offering will be fully backstopped by GSO Capital Partners, a subsidiary of The Blackstone Group, BlueMountain Capital Management, George Karfunkel, United Equities Commodities Company, and Contrarian Capital.
The rights offering, combined with the comprehensive financing package, will enable Kodak, at emergence, to repay its secured creditors under the current senior and junior debtor-in-possession loan facilities in full, finance its exit from Chapter 11, and strengthen its capital structure for the future.
Previously on abfjournal.com: Kodak Receives $895MM in Post-Bankruptcy Commitments, June 21, 2013