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Kodak restructuring approved by U.S. bankruptcy court

  • Bankruptcy judge Allan Gropper has signed off on a restructuring that will allow Eastman Kodak (EKDKQ.PK -27.8%) to emerge from Chap. 11 as a smaller company focused on commercial printing/imaging and touch sensor solutions.
  • Creditors with secured claims will be paid in full, while those with unsecured claims will only receive 4-5 cents on the dollar. Shareholders will receive nothing.
  • Thus, the ruling (widely expected) led Kodak to dive to $0.056 on the pink sheets just before the close.
  • Kodak, which has shed  47K employees since '03, will emerge from Chap. 11 with just 8.5K. Going into Chap. 11, and prior to major asset sales, headcount was 17K.
  • Last week, Gropper rejected a bid by shareholders to have a committee representing their interests set up for them.
  • Going forward, Kodak plans to sell $406M in stock (85% equity stake)  through a rights offering backstopped by creditors.
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Comments (6)
  • HIS MONEY
    , contributor
    Comments (67) | Send Message
     
    $EK to be trading again soon under this ticker??? IMHO there will be hidden shareholder value in new equity offering... feel sad for old shareholders losses though.Despite Kodak's sale of DI/KISS IP portfolios, Kodak still own thousands of IPs, some related to 3D imaging and touch sensors... their R&D will now be free to exploit this IP as they shed the dead weight (PI division) and focus strengths and customer base on emerging tech. $EKDKQ
    20 Aug 2013, 07:20 PM Reply Like
  • Davidoff
    , contributor
    Comments (311) | Send Message
     
    Haven't all their valuable patents been sold? I think that I read somewhere that Google and Apple won some bids, but most of the patents didn't find a buyer. So I don't really see what hidden value you're talking about... In the best case, shareholders could get $0,08 instead of $0,05, but it's written "shareholders will get nothing".. Also, talking about customer base is quiet premature. I can't even imagine what would they have to offer in today's tech market.
    20 Aug 2013, 07:32 PM Reply Like
  • HIS MONEY
    , contributor
    Comments (67) | Send Message
     
    $EKDKQ.PK I am advocating value in the new equity, not the current shares that are being wiped... Kodak sold their IP related to digital imaging... they have thousands of remaining IP which were not sold... some of this IP is related to 3D imaging, touchscreen sensors, etc. hence the recent venture with $UNXL, et al touchscreen players... sign me up for the new equity once offered; presumably under old ticker $EK
    20 Aug 2013, 07:50 PM Reply Like
  • Greenfire87
    , contributor
    Comments (630) | Send Message
     
    "shareholders will receive nothing"

     

    And EKDKQ is up 130% on 10 times volume.
    So is someone looking for a writeoff, or is this more sleazy wall street spin?
    Anyone??
    21 Aug 2013, 07:02 PM Reply Like
  • HIS MONEY
    , contributor
    Comments (67) | Send Message
     
    today's action was IMO bag holders buying to induce a short squeeze so they could sell @ higher PPS... also likely that newbies saw PPS action coincide w/news "Kodak to Emerge from BK" and bought in. $EKDKQ wll be cancelled... and Kodak will trade under $EK on NYSE soon IMO... sign me up then... wouldn't want to be caught holding $EKDKQ when the music stops. bank it.
    21 Aug 2013, 09:52 PM Reply Like
  • x3jahaquazi
    , contributor
    Comments (3) | Send Message
     
    I believe everything is premature and we need to see what happens in this coming week.
    24 Aug 2013, 02:44 PM Reply Like
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