Kodak Accepts Improved Financing

  Kodak Accepts Improved Financing

New $830 Million Facility to Provide Better Terms and Broader Participation by

Business Wire

ROCHESTER, N.Y. -- November 28, 2012

Eastman Kodak Company announced today that it has received and accepted an
offer from the Steering Committee of the Second Lien Noteholders Committee for
interim and exit financing totaling $830 million in loans. The commitment is
superior to – and therefore replaces – the $793 million commitment announced
by the company on November 12.

This financing strengthens Kodak’s position to successfully execute its
remaining reorganization objectives and emerge from Chapter 11 in the first
half of 2013.

Each of the ten institutional investors that comprise the Steering Committee
holds senior secured notes of the company. The improved financing will be open
to participation by all other holders of the notes, including the investors
that extended the November 12 commitment.

“As we continue to progress toward successful emergence, we remain focused on
doing what is best for the company’s creditors and other stakeholders,
including our customers, suppliers, and employees. We are pleased that these
existing creditors have come forward with a new proposal that offers better
terms and enables Kodak to further accelerate its momentum to emergence in the
first half of 2013,” said Antonio M. Perez, Chairman and Chief Executive
Officer. “The improved financing commitment provides a longer maturity, lower
fees and pricing, and greater liquidity than our previously announced
commitment. This is a vote of confidence in the future of our company. We are
particularly pleased that the financing allows for participation by all of our
pre-petition second lien noteholders in a manner that is cost-effective for
the company.”

The financing includes new money term loans of $455 million, as well as term
loans of up to $375 million issued to holders of senior secured notes
participating in the new money loans in a dollar-for-dollar exchange for
amounts outstanding under the company’s pre-petition second lien notes.

The financing is predicated on certain conditions, including the successful
completion of the sale of Kodak’s digital imaging patent portfolio for no less
than $500 million.

The commitment letter also contains provisions allowing for a conversion of up
to $630 million of the loans upon emergence into permanent exit financing due
five years after emergence, provided Kodak meets certain conditions, including
the consummation of a Plan of Reorganization by September 30, 2013, the
resolution of the company’s U.K. pension obligations, and the completion of
all or a portion of the sales of Kodak’s Document Imaging and Personalized
Imaging businesses.

The financing is subject to completion of definitive financing documentation
and Bankruptcy Court approval at a hearing that will be scheduled in the near


This document includes "forward-looking statements" as that term is defined
under the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements concerning the Company's plans, objectives,
goals, strategies, future events, future revenue or performance, capital
expenditures, financing needs, plans or business trends, and other information
that is not historical information. When used in this document, the words
"estimates," "expects," "anticipates," "projects," "plans," "intends,"
"believes," "forecasts," or future or conditional verbs, such as "will,"
"should," "could," or "may," and variations of such words or similar
expressions are intended to identify forward-looking statements. All
forward-looking statements, including, without limitation, management's
examination of historical operating trends and data are based upon the
Company's expectations and various assumptions. Future events or results may
differ from those anticipated or expressed in these forward-looking
statements. Important factors that could cause actual events or results to
differ materially from these forward-looking statements include, among others,
the risks and uncertainties described under the heading "Risk Factors" in the
Company's most recent annual report on Form 10-K under Item 1A of Part 1, in
the Company's most recent quarterly report on Form 10-Q under Item 1A of Part
II and those described in filings made by the Company with the U.S. Bankruptcy
Court for the Southern District of New York and in other filings the Company
makes with the SEC from time to time, as well as the following: the ability of
the Company to continue as a going concern, the Company's ability to obtain
Bankruptcy Court approval with respect to motions in the chapter 11 cases, the
ability of the Company and its subsidiaries to prosecute, develop and
consummate one or more plans of reorganization with respect to the chapter 11
cases, Bankruptcy Court rulings in the chapter 11 cases and the outcome of the
cases in general, the length of time the Company will operate under the
chapter 11 cases, risks associated with third party motions in the chapter 11
cases, which may interfere with the Company's ability to develop and
consummate one or more plans of reorganization once such plans are developed,
the potential adverse effects of the chapter 11 proceedings on the Company's
liquidity, results of operations, brand or business prospects, the ability to
execute the Company's business and restructuring plan, increased legal costs
related to the Bankruptcy Filing and other litigation, our ability to raise
sufficient proceeds from the sale of non-core assets and the monetization of
our digital imaging patent portfolios within our plan, the Company's ability
to generate or raise cash and maintain a cash balance sufficient to fund
continued investments, capital needs, restructuring payments and service its
debt and financing arrangements, the Company's ability to manage contracts
that are critical to its operation, to obtain and maintain appropriate terms
with customers, suppliers and service providers, to maintain product
reliability and quality, to effectively anticipate technology trends and
develop and market new products, solutions and technologies, to retain key
executives, managers and employees, our ability to successfully license and
enforce our intellectual property rights and the ability of the Company's
non-U.S. subsidiaries to continue to operate their businesses in the normal
course and without court supervision. There may be other factors that may
cause the Company's actual results to differ materially from the
forward-looking statements. All forward-looking statements attributable to the
Company or persons acting on its behalf apply only as of the date of this
document and are expressly qualified in their entirety by the cautionary
statements included in this report. The Company undertakes no obligation to
update or revise forward-looking statements to reflect events or circumstances
that arise after the date made or to reflect the occurrence of unanticipated


Christopher Veronda, 585-724-2622
Krista Gleason, 585-724-5952
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