Kodak Turns Over Film Division to Its UK Pension Plan

Today Eastman Kodak Company announced the transfer of its Personalized Imaging and Document Imaging businesses to the UK-based Kodak Pension Plan (KPP), its largest creditor. The deal includes Kodak’s Film Capture and Paper & Output Systems divisions, among others, and will see KPP take over responsibility for the operation of Kodak’s film business.

Kodak is giving the businesses over to KPP, the pension plan for its U.K. retirees, in order to settle $2.8 billion in claims KPP made against Kodak in bankruptcy proceedings. Kodak agreed to transfer the businesses to KPP for cash and non-cash consideration of $650 million. If the U.S. Bankruptcy Court and the UK Pensions Regulator approve the settlement, it will help pave the way for Kodak to emerge from Chapter 11. Kodak plans to focus on its Commercial Imaging business.

In a statement, Kodak Chairman and CEO Antonio M. Perez said the settlement helped Kodak clear “several key hurdles in our reorganization…. placing our Personalized Imaging and Document Imaging businesses with a new owner that recognizes their value and is focused on their growth and success, and providing the remaining liquidity we require to emerge from Chapter 11.”

According to a report in the Wall Street Journal, KPP plans to hire new executives to run the Personalized Imaging and Document Imaging businesses so they can generate cash flow for the pension plan, rather than finding a buyer for the businesses.

“The businesses that we are acquiring will deliver long-term cash flows to support the plan’s obligations,” said KPP chairman Steven Ross in a statement. “The financial stability that KPP will provide for the Personalized Imaging and Document Imaging businesses will be beneficial to those businesses’ employees, customers and partners.”

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4 Responses to “Kodak Turns Over Film Division to Its UK Pension Plan”

  1. Hasselblad 503CW; Kodak Film division | Paul Glover, Film Photographer Says:

    [...] So they want long-term cash flows from these bad boys. That implies running PI and DI as profitable businesses in the long term; you don’t get a “long term cash flow” from a company by selling it off or parting it out. Also backing this up there is a (subscriber only) report on the Wall Street Journal which is quoted at PDN Pulse: [...]

  2. PDN Pulse » Blog Archive » Rep Confirms Business as Usual For Kodak’s Film Division After Spinoff Says:

    [...] Monday Eastman Kodak Company announced that it would turn its Personalized Imaging and Document Imaging businesses over to KPP in order to [...]

  3. Mayo | Santiago Calero Flores / FOTÓGRAFO Says:

    [...] Kodak Turns Over Film Division to Its UK Pension Plan [...]

  4. george Says:

    I got an idea,why instead KPP turn it over to the Scottsdale Fire Department in Arozona, or whatever!