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Kodak and Lenders Finalize Terms of Interim and Exit Financing

Monday, March 04, 2013

Press release from the issuing company

ROCHESTER, N.Y. -- Kodak today announced that it has reached an agreement with the Steering Committee of the Second Lien Noteholders to amend the terms for the previously-announced interim and exit financing package. The amendments provide Kodak with additional flexibility to successfully execute its reorganization objectives and emerge from Chapter 11 in mid-2013.

“We are establishing a clear path for our emergence as a stronger, focused Commercial Imaging company,” said Antonio M. Perez, Chairman and Chief Executive Officer. “As we move toward finalizing our Plan of Reorganization, we are pleased to have reached an agreement with our lenders that gives Kodak additional financial flexibility in how we reach our ultimate goal of a successful emergence with a sustainable business model.”

As part of the agreement, certain terms of the financing have been amended. Kodak now is committed to achieving at least $600 million in cash proceeds through the disposition of any combination of specified non-Commercial Imaging assets, which include its Document Imaging and Personalized Imaging businesses, and trademarks and related rights. Additionally, in anticipation of a Plan of Reorganization to be filed by the company in April 2013, Kodak, along with the Steering Committee of the Second Lien Noteholders and the Unsecured Creditors Committee, will jointly hire a search firm to begin identifying potential new directors for the Board of Directors who will lead the reorganized Kodak following emergence. The existing Board also expects to appoint an additional independent director following closing of the financing. This director would be available to continue to serve on the Board following Kodak’s emergence.

Kodak anticipates closing the financing in mid to late March, subject to the prior approval of the Bankruptcy Court

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