Kodak Seeks Court Approval to Get Out of Nine Agreements
Eastman Kodak Co. (EKDKQ), the bankrupt photography pioneer, wants to terminate nine contracts including agreements with the PGA Tour Inc., a unit of CC Media Holdings Inc. (CCMO) and a unit of Thomson Reuters Corp. (TRI)
The company, looking to cut costs while in bankruptcy, said the price tag of keeping the contracts outweigh any benefits they may provide.
“The contracts are not a source of potential value for the estates or creditors,” the company said in court papers filed yesterday in U.S. Bankruptcy Court in Manhattan. Kodak didn’t disclose how much it spends on the contracts.
Kodak won court approval earlier this month to end its sponsorship agreement for the naming rights to the Los Angeles theater that hosts the annual Academy Awards show.
The company entered into a “six-year, multimillion dollar” agreement with the PGA Tour in December 2007, according to a company statement. The agreement included corporate hospitality and Kodak branding on scoreboards.
The photography pioneer announced in December that it was extending its marketing partnership with the PGA tour through 2016, according to the PGA Tour website. Kodak also decided in December it wouldn’t continue to sponsor the Kodak Challenge tour events, which started in 2009.
Kodak filed for bankruptcy Jan. 19 after consumers embraced digital cameras, a technology Kodak invented and failed to commercialize. The company, based in Rochester, New York, listed assets of $5.1 billion and debt of $6.8 billion in Chapter 11 documents.
The company will seek court approval to get rid of the contracts at a hearing scheduled for March 20, court papers show. Any objection to the contract rejection request must be filed by March 13.
The case is In re Eastman Kodak Co., 12-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan)