Eastman Kodak (EKDKQ.PK) has reached a deal with a retirees committee to resolve the bankrupt...

Eastman Kodak (EKDKQ.PK) has reached a deal with a retirees committee to resolve the bankrupt company's retiree health care and survivor benefits liabilities, which surpass $1.2B and cost Kodak $10M/month. Kodak will provide the committee with a $7.5M cash payment, a $635M unsecured claim, and a $15M administrative claim to make payments to retirees. The deal has the support of Kodak's creditors committee.

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Comments (4)
  • Ted Bear
    , contributor
    Comments (712) | Send Message
    That's a pretty good deal, for someone!


    I owe you $1.2 billion in some discounted/actuarial calculation.


    So YOU agree to accept $7.5 million, and two claims against a bankrupt company totaling $650 Million.


    In bankruptcy resolution, that $650 million might be worth???


    And even if it is worth 100 cents on the dollar, do the taxpayers pick up the difference between $1.2 Billion and $657.5 Million through the PBGC?


    This 'new' accounting really throws me for a loop.
    10 Oct 2012, 08:18 PM Reply Like
  • Seeker959
    , contributor
    Comments (63) | Send Message
    Umm why would the PBGC be involved, this was not the KRIP or the Kodak pension plan, this was future healthcare benefits, The retirees aren't really represented so Kodak can offer pennies on the dollar as there is no one to contest it. Forget the 650 million as Kodak is heading for Chapter 7 but the 7.5 million is probably to pay the staff to manage the future dollars coming into the plan or maybe Antonio Perez can be retained by the retirees to squander the 7.5 million too.


    The good news is eventually they need to exit BK and then the house of cards topples and at that point creditors have a shot at a few cents on the dollar once Citi gets their 800 million back and all the other debts not subject to compromise.
    13 Oct 2012, 03:01 AM Reply Like
  • csparksrmc
    , contributor
    Comments (39) | Send Message
    When do the bondholders find out how badly we are going to get shafted?
    10 Oct 2012, 09:12 PM Reply Like
  • Seeker959
    , contributor
    Comments (63) | Send Message
    You should find out in 2 more months but it should be in the range of 40 cents on the dollar. However the longer this drags out, the more cash Kodak bleeds so if the BK is extended to 2014 then all the cash on hand should be spent. Hopefully Judge Drapper doesn't let the show go on too much longer. It's amazing that Bank Robbery is illegal in the US but incompetent management can tear companies apart and make millions in the process.
    13 Oct 2012, 03:06 AM Reply Like
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