Court Approves Kodak Comprehensive Settlement with U.K. Pension Plan

The U.S. Bankruptcy Court for the Southern District of New York approved Kodak’s previously announced comprehensive settlement agreement with the U.K. Kodak Pension Plan (KPP), the company’s largest single creditor with respect to its Chapter 11 Plan of Reorganization. In approving the agreement, the Court described it as “a critical step forward in Kodak’s effort to consummate its Plan of Reorganization.” With the agreement, announced on April 29, Kodak’s Personalized Imaging (PI) and Document Imaging (DI) businesses will be spun off under the ownership of KPP.

“We have been working in close cooperation with KPP to achieve a smooth transition for our PI and DI employees and customers to a new owner – one who clearly recognizes the value of these businesses and intends to help them grow and succeed,” said Antonio M. Perez, Kodak Chairman and Chief Executive Officer. “We look forward now to completing our reorganization and emerging as a company focused on Commercial Imaging.”

The consummation of the KPP settlement is expected to occur after confirmation of the company’s Plan of Reorganization. Earlier this week, Kodak proposed rights offerings, an agreement with New York State on Eastman Business Park, and the engagement of arrangers for new financing, all key steps toward the confirmation of the company’s Plan of Reorganization and emergence.