- 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.
at CNBC.com (Nov 13, 2014)