Kodak moves closer to Chapter 11 bankruptcy exit

Kodak is set to file its long-awaited reorganisation plan next month.

The firm announced the news along with details of an amended financing plan that will give the company more flexibility as it moves closer to emerging from Chapter 11 bankruptcy protection.

The firm has put back the deadline for filing its reorganisation plan three times since entering Chapter 11 in January 2012.

Kodak is expected to exit Chapter 11 by mid-2013; the terms of the amended supplemental financing deal include a deadline of 30 September 2013 set by Kodak's lenders.

New covenants include lenders having a say in the future shape of Kodak's board of directors and the appointment of an executive search firm to "identify candidates for the post-emergence board of directors".

A Kodak spokesman told ProPrint's sister title, PrintWeek, that it was too soon to comment on specifics.

"It is typical that a new board is appointed upon emergence from Chapter 11, and the initiation of a search process indicates we are moving one step closer to completing our reorganisation," he said.

"It's premature, though, to speak about the composition of the new board - and whether current board members would continue or not."

The new financing plan includes a reduced target from the disposal of Kodak's remaining up-for-sale assets from US$700 million ($682 million) to US$600 million. This includes the company's Document Imaging and Personalised Imaging businesses, along with various related trademarks and intellectual property assets.

Kodak finalised the sale of a tranche of its patents for US$527 million last month. Initial estimates had put the value at almost four times that amount.