Kodak secures up to $895M in financing

ROCHESTER, N.Y. — Kodak has secured as much as $895 million to fund its operations after it emerges from bankruptcy protection. J.P. Morgan, Bank of America Merrill Lynch, and Barclays will supply senior secured term loans of up to $695 million. The banks also will arrange a senior secured asset-based revolving credit facility of up to $200 million. They have agreed to provide $130 million of that facility.

Kodak said the financing will allow it repay loans, finance its exit from Chapter 11, and fund its post-bankruptcy working capital.

The agreements are subject to court approval.


Kodak also said a court approved its settlement with its UK pension plan, which is its single largest creditor. The agreement, announced in April, will spin off Kodak’s personalized imaging and document imaging businesses to the pension plan. The arrangement will give the pension fund two profitable businesses that will provide ongoing income.

Get Talking Points in your inbox:
An afternoon recap of the day’s most important business news, delivered weekdays.
Thank you for signing up! Sign up for more newsletters here

Eastman Kodak Co., founded in 1880, sought bankruptcy protection in 2012. It has shed most of the businesses that turned it into an American icon and now plans to focus on commercial imaging and printing.

Associated Press