Kodak is a step nearer to getting out of Chapter 11 with confirmation of its plan of reorganisation.
The company says the US Bankruptcy Court for the Southern District of New York has confirmed the plan, which describes its strategy to emerge from Chapter 11 restructuring as a technology leader serving commercial imaging markets.
In confirming the plan, the Court said, “It will be enormously valuable for the Company to get out of Chapter 11, and begin to regain its position in the pantheon of American business.”
The plan also reflects the company’s effective utilisation of the Chapter 11 process to achieve its key reorganisation objectives, including successfully reducing legacy costs, liabilities and infrastructure, exiting or spinning off businesses and assets that were no longer core to its future, and focusing on the company’s most profitable business lines, it said.
Chairman and chief executive Antonio Perez says confirmation is a critically important milestone marking the final step in the court process: “Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets – such as commercial printing, packaging, functional printing and professional services – with a leaner structure and a stronger balance sheet.
“There are additional transactional steps ahead as we complete our Chapter 11 restructuring, but with the court’s decision today, our emergence is now imminent.”
Kodak’s plan of reorganisation will become effective upon emergence. The company is expected to finalise the remaining aspects of its reorganisation, including closing its settlement with the Kodak Pension Plan, and emerge from Chapter 11 on September 3.
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