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

April 29th, 2013

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.”