Kodak Receives Court Approval for Disclosure Statement, Cornerstone Investment and Agreement to Arrange New Financing

  Kodak Receives Court Approval for Disclosure Statement, Cornerstone
  Investment and Agreement to Arrange New Financing

Court Rules Disclosure Statement Contains Necessary Information to Enable
Creditors to Vote on Plan of Reorganization; Approves Procedures Governing
Vote on Plan of Reorganization

Approval of Agreements with Investors Backstopping Rights Offering and New
Lenders Provide Strong Capital Structure upon Emergence

Business Wire

ROCHESTER, N.Y. -- June 25, 2013

The U.S. Bankruptcy Court for the Southern District of New York today
determined that the Company’s Disclosure Statement contains the information
necessary to enable creditors to vote on the Plan of Reorganization. The Court
today also approved Eastman Kodak Company’s recently announced Backstop
Commitment Agreement and Rights Offering, as well as an agreement with leading
financial institutions J.P. Morgan Chase, Barclays Bank and Bank of America
Merrill Lynch to arrange new exit financing and post-emergence facilities of
up to $895 million.

Following today’s approval of the Disclosure Statement, Kodak will commence
the voting process on the Plan of Reorganization as outlined in the filings.

The cornerstone investment, effected through the backstop of the $406 million
Rights Offering, demonstrates market confidence in post-emergence Kodak, and
will significantly strengthen the funding of Kodak’s previously announced Plan
of Reorganization. The rights offering will be fully backstopped by GSO
Capital Partners, a subsidiary of The Blackstone Group, BlueMountain Capital
Management, George Karfunkel, United Equities Commodities Company, and
Contrarian Capital.

The Rights Offering, combined with the comprehensive financing package, will
enable Kodak, at emergence, to repay its secured creditors under the current
senior and junior Debtor-in-Possession loan facilities in full, finance its
exit from Chapter 11, and strengthen its capital structure for the future.

“With the approval today of our Disclosure Statement, we look forward to
seeking creditor votes for our Plan of Reorganization. An equity commitment
from the backstop firms is a strong vote of confidence in Kodak’s Plan of
Reorganization and in the work we have undertaken during our restructuring,”
said Antonio M. Perez, Kodak’s Chairman and Chief Executive Officer. “Taken
together, the combination of the rights offering and the agreement to arrange
new financing is extremely important as it enables us to repay the secured
creditors; provides the company with a strong, stable capital structure;
signals market and creditor confidence in post-emergence Kodak; and
demonstrates our ability to generate value for our stakeholders by
capitalizing on our leadership in the large and growing markets of commercial
digital printing, packaging and functional printing.”

Jason New, Senior Managing Director of The Blackstone Group and Head of
Distressed Investing for GSO Capital Partners, one of the world’s largest
credit-oriented alternative asset managers said, “GSO is excited about our
strategic investment in Kodak. We have been impressed by Kodak’s
accomplishments under its restructuring, especially the resolution of
significant legacy liabilities. We look forward to a renewed Kodak competing
successfully again with market-leading technology and products in the
commercial, packaging and functional printing markets it serves.”


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, 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 agreements; our ability to secure investments and
financing, including satisfying the conditions to our exit financing; the
potential adverse effects of the Chapter 11 proceedings on the Company’s
liquidity, results of operations, brand or business prospects; 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 agreements
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; the Company’s ability to retain key
executives, managers and employees; the Company’s 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
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 events.


Christopher Veronda, +1 585-724-2622
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