Kodak reaches deal to borrow $793M

Nov 12, 2012 by Peter Svensson

(AP)—Kodak says it has reached an agreement to borrow $793 million, an important step in letting it leave bankruptcy protection in the first half of next year.

The printing and photography company would borrow the money from a private investment firm, Centerbridge Partners, and the lending arms of asset management firm The Blackstone Group and banks Chase & Co. and UBS AG.

The deal is contingent on being able to sell its patent portfolio for at least $500 million. The company has been trying to sell that asset for more than a year. In a statement, Kodak says it is "confident it will achieve" that requirement.

The loan would consist of $476 million in new loans and $317 million in roll-overs of old debt. There's a provision to convert $567 million into "exit financing," a prerequisite for emerging from .

Kodak filed for bankruptcy protection in January after struggling to adapt to the world of digital photography.

Explore further: Alibaba surges in Wall Street debut (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Kodak gets 2013 deadline to reorganize

Jan 20, 2012

(AP) -- Eastman Kodak Co. has obtained a bankruptcy judge's approval to borrow an initial $650 million from Citigroup Inc. to keep operations running while it peddles a trove of digital-imaging patents.

Kodak to sell imaging units, focus on printing

Aug 23, 2012

(AP)—Kodak says it will sell its document imaging and personalized imaging businesses to better focus on printing and business services as it works to emerge from bankruptcy protection.

Kodak wins OK to auction digital patents

Jul 03, 2012

(AP) — Kodak says bankruptcy court has approved an auction of its imaging patent portfolios over the objections of Apple and FlashPoint Technologies, giving the photography pioneer clarity on ownership claims.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0