BANKRUPT IMAGING FIRM Kodak announced it has received approval to borrow $844m and forecast emerging from Chapter 11 bankruptcy in mid 2013.
Kodak has been in Chapter 11 bankruptcy while it sold off parts of its business and reorganised. Now the firm said it has received court approval to borrow $844m, saying the money will be put to finalising its restructuring plan.
The company tried to get billions for its patent portfolio but only managed to receive bids in the $500m range, and its reorganisation plan included slashing jobs and cutting other costs. However Kodak said the loan comes with the condition that it has to complete the sale of all or at least a part of its Document Imaging and Personalisation Imaging businesses.
Kodak chairman and CEO Antonio Perez said, "The Court's approval of this financing commitment puts Kodak in a strong position to emerge from Chapter 11.
"This agreement, in conjunction with the recently approved sale and licensing of our digital imaging patent portfolio, lays the financial foundation for our Plan of Reorganization and a successful emergence from Chapter 11 as a profitable and sustainable company.
"Taken together, these accomplishments, along with other recent developments, such as the resolution of certain of our legacy liabilities, demonstrate the tangible and meaningful progress Kodak is making as it moves through the final phase of its restructuring."
Kodak reiterated that its patent portfolio won't be sold for less than $500m, however given that the firm had previously claimed it would extract billions from its patents, its valuation might be taken with a dash of salt, especially since no details on the $500m bid have been made public.
Nevertheless the company said that the $844m loan will help it emerge from Chapter 11 bankruptcy in the middle of this year. µ