Kodak set for ‘£500m’ bankruptcy rescue deal (update)

Eastman Kodak has struck a £500 million deal with lenders that could see it escape bankruptcy next year, according to Reuters news agency and other sources.

kodak

Kodak is set to be bailed out in the form of $793m in fresh loans from JP Morgan Chase & Co, GSO Capital Partners, UBS and Centerbridge Partners.

However, the deal hinges on whether Kodak can raise at least $500m by selling its patent portfolio, reports Reuters.

The agreement also needs to win approval from the US bankruptcy court.

A Kodak spokesperson could not be reached for comment at the time of writing.

Eastman Kodak filed for bankruptcy protection in the US in January.

The firm has since announced its exit from the camera market and plans to sell off its traditional film and photographic paper businesses.

In September, bosses confirmed moves to stop selling inkjet printers, shifting Kodak yet further away from the consumer arena.

NEWS UPDATE 12.28pm:

In a statement, Kodak CEO Antonio M Perez said: ‘The additional liquidity from this financing will enable Kodak to accelerate its momentum as we continue to successfully execute on our reorganisation objectives and emerge in the first half of 2013...

‘The significance of this agreement for Kodak is that it establishes a clear path for our emergence as a stronger, more focused company.'

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