The Holiday Gift Auction is Live! Click here and bid now on great local gifts!
State and Nation Business

Kodak seeks approval for reorganization plan

NEW YORK – Kodak attorneys asked a federal bankruptcy judge Tuesday to approve its plan to emerge from Chapter 11 protection as a smaller company.

Founded in 1880, Eastman Kodak Co. filed for bankruptcy protection last year after struggling with increasing competition, the shift from film to digital photography and growing debt levels. Since its filing, Kodak has sold off many of its businesses and patents so it can concentrate on commercial and packaging printing.

If Judge Allan Gropper gives his approval, the storied company could emerge from court oversight within weeks. Kodak has set Sept. 3 as its target date.

Last week, a majority of the company’s shareholders voted to approve its plan to emerge. But some retirees, shareholders and other parties have objected to it.

Although shareholders argued that they should be entitled for something in exchange for their stock, Gropper said he ruled at a previous hearing that they weren’t. He noted that the company’s creditors will only receive 4 cents or 5 cents on the dollar for their investments and that they’re entitled to be paid before shareholders are. Generally, holders of common stock do not receive anything for their shares when a company emerges from Chapter 11.

The U.S. Trustee has also filed an objection challenging the legality of hefty cash and stock bonuses that Kodak executives are expected to receive when the Rochester, N.Y., company exits from bankruptcy protection.

___

Follow Bree Fowler on Twitter at https://twitter.com/APBreeFowler

Loading more

Digital Access

Digital Access
Access nwherald.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, weekend and Sunday packages.

Text Alerts

Text Alerts
Stay connected to us wherever you are! Get breaking news updates along with other area information sent to you as a text message to your wireless device.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Plan your weekend and catch up on the news with our newsletters.