Eastman Kodak Co., the bankrupt photography pioneer, won court approval for $844 million in financing that it will use to complete its restructuring.
The financing from a group of noteholders was approved at a hearing today by U.S. Bankruptcy Judge Allan Gropper in Manhattan. It can be converted into $644 million of exit financing to fund Kodak’s emergence from court protection, according to court papers.
Kodak is “well on its way” to completing its reorganization and the financing will support the company as it develops its plan, Andrew Dietderich, a Kodak attorney, said at the hearing. Kodak said in a statement that it plans to emerge from bankruptcy in the middle of this year.
Kodak, based in Rochester, New York, filed for bankruptcy in January 2012, and Chief Executive Officer Antonio Perez has been selling businesses to shrink the company and fund its shift into commercial printing and packaging. Earlier this month, it won court approval to sell patents to a group of technology companies including Apple Inc. and Google Inc.
“The financial picture is a stark contrast to the company that filed for Chapter 11 this time last year,” Dietderich said at the hearing.
The case is In re Eastman Kodak Co., 12-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan).