Eastman Kodak Co. (EK) said two directors from KKR & Co. resigned from its board, two years after the private-equity firm helped the 131-year-old imaging company refinance debt.
Adam H. Clammer and Herald Y. Chen notified the board of their resignation on Dec. 21, Rochester, New York-based Kodak said today in a regulatory filing. Both were elected in September 2009 after a refinancing deal that included KKR investing in $300 million of senior bonds and warrants for 40 million shares.
By agreeing to hold the investment for at least two years among other conditions, the private-equity firm run by Henry Kravis and George Roberts was entitled to nominate two board members, Kodak said in September 2009. Kodak shares have lost 86 percent since the deal was struck, closing today at 69 cents in New York. The warrant exercise price was $5.50 a share.
Kodak Chairman and Chief Executive Officer Antonio Perez, who took the helm in 2005, has sharpened Kodak’s focus on the printing business to help revive revenue. He is trying to sell a portfolio of more than 1,100 digital imaging patents, and other businesses.
Kodak, whose origins date back to 1880, was founded by George Eastman, who introduced the Kodak camera eight years later, according to the company’s website. Kodak has shifted away from traditional film as consumers gravitate toward digital cameras, and is building its commercial and consumer printing business.
Kodak won’t replace Clammer and Chen “because we have for some time been seeking to reduce the size of our board,” spokesman Gerard Meuchner said.
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