Eastman Kodak Company (EKDKQ.PK) Restructuring plans for commercial framework for business images bankruptcy judge approved day (Tuesday), the former photography company one step closer to exit Chapter 11 protection.
In the United States Bankruptcy Court in Manhattan, Judge Allan Gropper said he was "happy" green-called disclosure statement, the creditor will be used as a reference when they plan to vote in the coming weeks.
Kodak announced in January 2012 bankruptcy because of high pension costs, embrace digital technology in the photography business for many years after falling behind rivals.
Since then, it has sold various assets, and as a major commercial imaging key enterprises will get rid of Chapter 11.
Last week, the company announced that it has partnered with JP Morgan Chase (JPM.N: Quote), Bank of America (BAC.N: Quote) and Barclays (BARC.L: Quote) reached a value of $ 8.95 million in financing transactions . Kodak will use the money to pay off the loan to finance its bankruptcy, as well as for working capital, its exit Chapter 11, is expected later this year.
Kodak also plans to implement a $ 4.06 million rights offer to sell 3.4 billion shares, or 85% of the reorganized company equity. The proceeds will be used to repay the creditors, including the more junior second lien creditors will no longer receive equity in the reorganized company.
Before Kodak can exit bankruptcy reorganization plan must be supported by the creditors, and plan, you must go for a final sign Gropper. This hearing is expected to be August 20.
Gropper expressed sympathy Kodak's small creditors, many of whom have written to express their claims to the court, stand to see little or no recovery concerns.
In Colorado, a business owner, said Gropper, her company will go bankrupt because of a $ 148,000 letter calls for Kodak, Gropper said.
Shareholders whose stakes stand completely eliminated, have flooded the court letters, and some seek a committee that guarantee their interests. This is a decisive uphill battle because Gropper had once refused to appoint a Shareholders' Committee. But the judge at Tuesday's hearing that the shareholders should get some answers, either from Kodak or shareholders in the form of hearings concern reply.
"These letters are from the heart, Gropper said."
The case is in Re: Eastman Kodak Company, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202, No..
 



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