Kodak and Lenders Finalize Terms of Interim and Exit Financing
March 01 2013 - 8:30AM
Business Wire
Kodak today announced that it has reached an agreement with the
Steering Committee of the Second Lien Noteholders to amend the
terms for the previously-announced interim and exit financing
package. The amendments provide Kodak with additional flexibility
to successfully execute its reorganization objectives and emerge
from Chapter 11 in mid-2013.
“We are establishing a clear path for our emergence as a
stronger, focused Commercial Imaging company,” said Antonio M.
Perez, Chairman and Chief Executive Officer. “As we move toward
finalizing our Plan of Reorganization, we are pleased to have
reached an agreement with our lenders that gives Kodak additional
financial flexibility in how we reach our ultimate goal of a
successful emergence with a sustainable business model.”
As part of the agreement, certain terms of the financing have
been amended. Kodak now is committed to achieving at least $600
million in cash proceeds through the disposition of any combination
of specified non-Commercial Imaging assets, which include its
Document Imaging and Personalized Imaging businesses, and
trademarks and related rights. Additionally, in anticipation of a
Plan of Reorganization to be filed by the company in April 2013,
Kodak, along with the Steering Committee of the Second Lien
Noteholders and the Unsecured Creditors Committee, will jointly
hire a search firm to begin identifying potential new directors for
the Board of Directors who will lead the reorganized Kodak
following emergence. The existing Board also expects to appoint an
additional independent director following closing of the financing.
This director would be available to continue to serve on the Board
following Kodak’s emergence.
Kodak anticipates closing the financing in mid to late March,
subject to the prior approval of the Bankruptcy Court.
CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This document includes “forward-looking statements” as that term
is defined under the Private Securities Litigation Reform Act of
1995. Forward-looking statements include statements concerning the
Company’s plans, objectives, goals, strategies, future events,
future revenue or performance, capital expenditures, liquidity,
financing needs, business trends, and other information that is not
historical information. When used in this document, the words
“estimates,” “expects,” “anticipates,” “projects,” “plans,”
“intends,” “believes,” “predicts,” “forecasts,” or future or
conditional verbs, such as “will,” “should,” “could,” or “may,” and
variations of such words or similar expressions are intended to
identify forward-looking statements. All forward-looking
statements, including, without limitation, management’s examination
of historical operating trends and data are based upon the
Company’s expectations and various assumptions. Future events or
results may differ from those anticipated or expressed in these
forward-looking statements. Important factors that could cause
actual events or results to differ materially from these
forward-looking statements include, among others, the risks and
uncertainties described in more detail in the Company’s most recent
Annual Report on Form 10-K for the year ended December 31, 2011,
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2012, June 30, 2012 and September 30, 2012, under the headings
“Business,” “Risk Factors,” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations–Liquidity
and Capital Resources,” and those described in filings made by the
Company with the U.S. Bankruptcy Court for the Southern District of
New York and in other filings the Company makes with the SEC from
time to time, as well as the following: the Company’s ability to
successfully emerge from Chapter 11 as a profitable sustainable
company; the ability of the Company and its subsidiaries to
develop, secure approval of and consummate one or more plans of
reorganization with respect to the Chapter 11 cases; the corporate
governance of the Company prior to and following emergence from
Chapter 11; the Company’s ability to improve its operating
structure, financial results and profitability; the ability of the
Company to achieve cash forecasts, financial projections, and
projected growth; our ability to raise sufficient proceeds from the
sale of businesses and non-core assets; the businesses the Company
expects to emerge from Chapter 11; the ability of the company to
discontinue certain businesses or operations; the ability of the
Company to continue as a going concern; the Company’s ability to
comply with the Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) covenants in its Debtor-in-Possession Credit
Agreement; our ability to obtain additional financing; the
potential adverse effects of the Chapter 11 proceedings on the
Company’s liquidity, results of operations, brand or business
prospects; the outcome of our intellectual property patent
litigation matters; the Company’s ability to generate or raise cash
and maintain a cash balance sufficient to comply with the minimum
liquidity covenants in its Debtor-in-Possession Credit Agreement
and to fund continued investments, capital needs, restructuring
payments and service its debt; our ability to fairly resolve legacy
liabilities; the resolution of claims against the Company; our
ability to retain key executives, managers and employees; our
ability to maintain product reliability and quality and growth in
relevant markets; our ability to effectively anticipate technology
trends and develop and market new products, solutions and
technologies; the Company’s ability to satisfy any of the
conditions to the closing of the Junior DIP Facility; the risk that
the Offer, while extended, may be terminated by the Company and not
consummated; and the impact of the global economic environment on
the Company. There may be other factors that may cause the
Company’s actual results to differ materially from the
forward-looking statements. All forward-looking statements
attributable to the Company or persons acting on its behalf apply
only as of the date of this document, and are expressly qualified
in their entirety by the cautionary statements included in this
report. The Company undertakes no obligation to update or revise
forward-looking statements to reflect events or circumstances that
arise after the date made or to reflect the occurrence of
unanticipated events.