Eastman Kodak Co. won court approval yesterday of its plan to exit bankruptcy as a commercial printing company that sells nothing to consumers, Bloomberg reported today. The plan, which cuts about $4.1 billion of debt, was approved by Hon. Allan Gropper and affirms Kodak’s move away from cameras, film sales and consumer photo developing, which had made the company a household name, to focus instead on printing technology for corporate customers. Kodak “is in many ways a new operation” after shedding its best-known businesses, Judge Gropper said. “This is on a day when many are losing retirement benefits, when many are finding that their recovery as a creditor is just a minute fraction” of what they expected. Secured claims will be paid in full under the plan, while shareholders will receive nothing. Unsecured creditors with estimated claims of as much as $2.2 billion will be paid 4 to 5 cents on the dollar. In court papers, Kodak called the plan a “comprehensive compromise” between the company and its creditors. The bankruptcy case is In re Eastman Kodak Co., 12-bk-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
