Agreement amends certain terms, giving Kodak
additional flexibility
ROCHESTER, N.Y.--(BUSINESS WIRE)--Mar. 1, 2013--
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.
Source: Kodak
Media:
Kodak
Christopher
Veronda, +1 585-724-2622
christopher.veronda@kodak.com
or
Krista
Gleason, +1 585-724-5952
krista.gleason@kodak.com
