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Kodak Completes $527 Million Transaction Related to Digital Imaging Patents



  Kodak Completes $527 Million Transaction Related to Digital Imaging Patents

Business Wire

ROCHESTER, N.Y. -- February 1, 2013

Eastman Kodak Company has completed a transaction for the sale and licensing
of its digital imaging patents for net proceeds of $527 million.

The transaction, which achieves one of Kodak’s key restructuring objectives,
follows other recent major accomplishments that include final Court approval
last week for the company’s interim and exit financing. Kodak’s monetization
of IP assets further builds on its momentum toward emergence in mid-2013.

A portion of the $527 million was paid by 12 intellectual property licensees
organized by Intellectual Ventures and RPX Corporation. Another portion was
paid by Intellectual Ventures, which acquired a substantial majority of the
digital imaging patent portfolio subject to these new licenses, as well as
previously existing licenses.

“The licensing and sale of our digital imaging patents is another major
milestone toward successful emergence,” Antonio M. Perez, Chairman and Chief
Executive Officer, said. “We are on track to emerge as a profitable,
sustainable company.”

The completion of the sale enables Kodak to repay a substantial amount of its
initial DIP loan, satisfy a key condition for its newly approved financing
facility, and position its core Commercial Imaging business for future growth
and success.

Kodak retains significant competitive advantages and strong growth prospects
in its core Commercial Imaging businesses. In addition to retaining rights to
use the 1,100 digital imaging patents sold in the transaction, Kodak maintains
ownership of about 9,600 patents, including many focused on its core business.

The transaction includes an agreement to settle current patent-related
litigation between the participants and Kodak, which avoids additional
litigation costs and helps to ensure that management and the company’s
resources focus on enhancing core operations.

About Kodak

Kodak is transforming into a B2B company focused on its Commercial Imaging
business. Kodak will be centered on commercial, packaging and functional
printing solutions and enterprise services, markets in which it offers
customers advanced technologies that give them a competitive edge. The company
also offers leading products and services in Entertainment Imaging and
Commercial Films. Its Personalized Imaging and Document Imaging businesses are
being marketed for sale. For additional information on Kodak, visit kodak.com.

CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

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, liquidity, financing needs, business trends, and other
information that is not historical information. When used in this document,
the words “estimates,” “expects,” “anticipates,” “projects,” “plans,”
“intends,” “believes,” “predicts,” “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 in more detail in the
Company's most recent Annual Report on Form 10-K for the year ended December
31, 2011, Quarterly Reports on Form 10-Q for the quarters ended March 31,
2012, June 30, 2012 and September 30, 2012, under the headings “Business,”
“Risk Factors,” and “Management's Discussion and Analysis of Financial
Condition and Results of Operations–Liquidity and Capital Resources,” 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 Company’s
ability to successfully emerge from Chapter 11 as a profitable sustainable
company; the ability of the Company and its subsidiaries to develop, secure
approval of and consummate one or more plans of reorganization with respect to
the Chapter 11 cases; the Company’s ability to improve its operating
structure, financial results and profitability; the ability of the Company to
achieve cash forecasts, financial projections, and projected growth; our
ability to raise sufficient proceeds from the sale of businesses and non-core
assets; the businesses the Company expects to emerge from Chapter 11; the
ability of the company to discontinue certain businesses or operations; the
ability of the Company to continue as a going concern; the Company’s ability
to comply with the Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) covenants in its Debtor-in-Possession Credit Agreement;
our ability to obtain additional financing; the potential adverse effects of
the Chapter 11 proceedings on the Company's liquidity, results of operations,
brand or business prospects; the steps necessary to complete the monetization
of our digital imaging patent portfolio; the outcome of our intellectual
property patent litigation matters; the Company's ability to generate or raise
cash and maintain a cash balance sufficient to comply with the minimum
liquidity covenants in its Debtor-in-Possession Credit Agreement and to fund
continued investments, capital needs, restructuring payments and service its
debt; our ability to fairly resolve legacy liabilities; the resolution of
claims against the Company; our ability to retain key executives, managers and
employees; our ability to maintain product reliability and quality and growth
in relevant markets; our ability to effectively anticipate technology trends
and develop and market new products, solutions and technologies; and the
impact of the global economic environment on the Company. 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 document. 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
events.

Contact:

Media:
Kodak
Christopher Veronda, +1 585-724-2622
christopher.veronda@kodak.com
or
Krista Gleason, +1 585-724-5952
krista.gleason@kodak.com
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