Eastman Kodak Company has announced a settlement agreement with the UK Kodak Pension Plan (KPP) that will see its Personalised Imaging and Document Imaging businesses transferred to UK retirees in a deal worth around $2.8bn (£1.8bn).

Kodak declared Chapter 11 bankruptcy last January and this deal was conducted to settle $2.8bn in obligations that it had to UK retirees. Kodak will receive cash and assets worth $650m as part of the deal.

Kodak chairman and chief executive officer Antonia Perez said: “In one comprehensive transaction, Kodak will realise its previously announced intention to divest its Personalized Imaging and Document Imaging businesses and settle its largest legacy liability. The KPP transaction moves us past several key hurdles in our reorganisation, resolving all potential claims worldwide and provides the remaining liquidity we require to emerge from Chapter 11.”

KPP chairman Steven Ross commented: “KPP and Kodak have been working collaboratively since the beginning of the case, and this acquisition provides security for and delivers the greatest value to, the KPP members. Overall, this settlement gives the KPP members greatly improved future prospects whilst being good for Kodak’s employees, its creditors and for UK businesses. The businesses that we are acquiring will deliver long-term cash flows to support the plan’s obligations."

Hogan Lovells advised the trustees of the Kodak Pension Plan. Partner Katie Banks said: “This acquisition is a significant milestone in the ongoing process of achieving value for KPP from the Eastman Kodak Company bankruptcy process and a hugely positive step forward for KPP members.”

Share Story: