May 1st, 2013

Rep Confirms Business as Usual For Kodak’s Film Division After Spinoff

Kodak’s transfer of its Personalized Imaging and Document Imaging businesses—including its photographic film division—to the UK Kodak Pension Plan (KPP) will not affect the production or distribution of photographic film, according to Audrey Jonckheer, Global Communications Director for Kodak’s Personalized Imaging business.

Jonckheer says the Personalized Imaging and Document Imaging businesses are gearing up for what they hope will be a smooth transition. “This whole plan was put together so there would not be any changes in product, services or delivery to our customer base…. All of the manufacturing sites will continue to operate as normal.”

On Monday Eastman Kodak Company announced that it would turn its Personalized Imaging and Document Imaging businesses over to KPP 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.

The proposed deal has encouraged optimism, Jonckheer says. Today the KPP chairman, Steven Ross, was in Rochester, where Kodak is based, speaking with Kodak employees and local reporters. According to Jonckheer, “He exuded confidence in the growth prospects for the businesses,” and said that with the proper investment, which Kodak hasn’t been able to make due to their Chapter 11 status, the businesses could grow.

“That’s the part that’s exciting to us, because we are profitable,” Jonckheer says. “The future is looking bright.”

In the immediate aftermath of the announcement the majority of social media chatter was about the future of Kodak film, says Jonckheer. “From a social media perspective, from the immediate media coverage that we saw, it was primarily film. Film was in the headlines,” she told PDN. “No matter what this company does, the reaction is always, ‘How is this going to affect film?’”

“We have been asked that, and we have said what we’ve been saying all along, which is that the lifecycle of film depends on the demand for it, and as long as there is profitable demand there will be film.”

Related: Kodak Turns Over Film Division to Its UK Pension Plan

January 4th, 2012

Kodak Shares Below $1, Could Be Delisted From NYSE

In Eastman Kodak Company’s most recent filing with the Securities and Exchange Commission, dated January 3, 2012, the publicly traded company reported receiving notice from the New York Stock Exchange (“NYSE”) warning that its stock was in danger of being delisted “because the average closing price of Kodak common shares was less than $1.00 over a consecutive 30-trading-day period.”

The one-time film giant has struggled to re-build its business as photography moves to digital imaging.

According to a report today on the Wall Street Journal Web site, Eastman Kodak Co. may file for bankruptcy if “in the coming weeks efforts to sell a trove of digital patents fall through.”

WSJ.com cited unnamed sources and noted that a spokesman for Kodak refused to comment on “market rumor or speculation.”

Kodak has six months to bring its minimum share price back above a dollar. In a press release (see the full Kodak press release below) about the NYSE notice, Kodak outlined factors that could prevent it from regaining share price compliance within a six-month period.

If Kodak does file for Chapter 11 bankruptcy protection and its proposal is accepted by a judge and its creditors, Chapter 11 bankruptcy would allow it to reorganize its finances and restructure its debts without liquidating its assets.

Filing for Chapter 11 would not result in Eastman Kodak Company common stock remaining listed on the NYSE. The company would have to be restructured and relisted. (more…)