Posts Tagged ‘Perez’

  • Court backs Kodak’s return to the business ‘pantheon’

    Kodak is passing one of the final milestones required in its emergence from Chapter 11 bankruptcy in the US, with the Bankruptcy Court for the Southern District of New York, backing the once-iconic company’s Plan of Emergence.

    The Plan describes the company’s strategy to emerge from Chapter 11 restructuring as a technology leader serving commercial imaging markets. In confirming the Plan, the Court said: “It will be enormously valuable for the Company to get out of Chapter 11, and begin to regain its position in the pantheon of American business.”

    According to Kodak, the Plan also reflects its effective utilisation of the Chapter 11 process to achieve its key reorganization objectives, including successfully reducing legacy costs, liabilities and infrastructure, exiting or spinning off businesses and assets that were no longer core to its future, and focusing on the company’s most profitable business lines.

    “Today, the Court confirmed Kodak’s Plan of Reorganization. This critically important milestone marks the final step in the Court process,” said Antonio M. Perez (pictured), Kodak chairman and CEO.

    “Next, we move on to emergence as a technology leader serving large and growing commercial imaging markets – such as commercial printing, packaging, functional printing and professional services – with a leaner structure and a stronger balance sheet,” said Perez. “There are additional transactional steps ahead as we complete our Chapter 11 restructuring, but with the Court’s decision today, our emergence is now imminent.”

    Kodak’s Plan of Reorganization will become effective upon emergence. The company is expected to finalize the remaining aspects of its reorganization, including closing its settlement with the Kodak Pension Plan, and emerge from Chapter 11 on 3 September.

  • One more year for Kodak chief after bankruptcy emergence

    Kodak chief, Antonio M. Perez, will hold on to the top job for up to a year following the company’s planned re-emergence from Chapter 11 bankruptcy in the USA, with the company claiming that continuity in leadership will help ensure the successful continuing transformation of the business into a global commercial print player.

    On 30 July, Kodak outlined its post-emergence executive leadership in supplemental filings to its bankruptcy emergence ‘Plan of Reorganization’ – with Perez retaining the CEO post he has held since 2005 for at least one year from emergence, or until the post-emergence board elects his successor.

    Perez (pictured) is also set to serve the reorganized company in a consulting capacity for up to another two years following the initial one-year term and as a member of the board. He started with Kodak as president, under former CEO, Daniel Carp, and became CEO himself within two years. It was under Perez that the company filed for Chapter 11 Bankruptcy in January 2012.

    Since filing for bankruptcy, the New York state-based Kodak has eliminated health care benefits for its retirees and has shed itself of its digital camera and desktop printing product portfolios.

    According to Kodak, the new team will ensure continuity in the company’s leadership and has the expertise to continue the implementation of the company’s business transformation, which focuses on imaging innovation for business.

    Kodak expects to emerge from bankruptcy before the end of September – 3 September is the date tentatively put forward – with the company announcing in late June that it expected to pay back its secured creditors using its debt financing of US$895 million.

    The new equity investors have confirmed their acceptance of this management team, which is a condition to Kodak’s emergence equity plan.

    In its filings, the company named the following senior corporate and business unit executives:

    Antonio M. Perez: continues as CEO and will serve as a member of the board. Perez commits to serve the reorganized company for up to three years following the company’s emergence from Chapter 11. During his tenure as CEO, in addition to fulfilling his responsibilities as CEO, Perez will be actively involved with the Board in identifying the right successor with whom he will work closely to effect a seamless transition.

    Upon the appointment of his successor, Perez would resign from his position as CEO, and would then continue working closely with his successor and the board as a full-time special advisor to the board to effect a seamless transition and facilitate the continued realization of the company’s transformation for a period up to the first anniversary of the company’s emergence

    Douglas J. Edwards: remains in his role as President of Digital Printing and Enterprise. He was named to the post in September 2012, and elected a senior vice president in October 2012. 

    Brad W. Kruchten: continues to serve as president, Graphics, Entertainment & Commercial Films, which includes Prepress, Entertainment Imaging, Commercial Film and Global Consumables Manufacturing, a position he has held since 2011. The Graphics business includes renowned products such as Kodak Prinergy Workflow and Kodak Sonora Process Free Plates.

    Terry R. Taber: continues in his current post as chief technical officer, a position he has held since 2009. As CTO, he is responsible for the development of key technologies including those in functional printing.

    Eric H. Samuels: serves as controller, having been appointed corporate controller and chief accounting officer in July 2009.           

    Patrick M. Sheller: serves as the general counsel, secretary and chief administrative officer, positions he has held since 2012.

    “On behalf of the entire continuing management team, we appreciate the support of our new owners and look forward to the completion of Kodak’s successful restructuring, the confirmation of our Plan of Reorganization and our emergence from Chapter 11 later in the third quarter,” said Perez.

    These management arrangements are subject to certain conditions, including approval as part of confirmation of Kodak’s of ‘Plan of Reorganization’ and Kodak’s emergence from Chapter 11. The confirmation hearing on the ‘Plan of Reorganization’ is currently scheduled for August 20, 2013, with emergence expected during the third quarter.

  • Kodak secures $895m for creditor payback

    Kodak is readying to pay back its creditors when it emerges from Chapter 11 bankruptcy in the US following a deal with its financial backers that sees it receive debt financing of US$895 million with which to repay its outstanding debts to secured creditors.

    The company, which entered Chapter 11 bankruptcy in the US in January 2012, announced on 20 June that it had reached a debt financing deal to be arranged by J.P. Morgan, Bank of America Merrill Lynch, and Barclays to arrange new post-emergence credit facilities of up to $895 million.

    In a statement, Kodak said:

    This comprehensive financing package will enable Kodak, at emergence, to repay its secured creditors under the current senior and junior Debtor-in-Possession loan facilities, finance its exit from Chapter 11, and meet the company’s post-emergence working capital and liquidity needs.

    The proposed term loan financing is expected to provide the company with more favorable terms compared to the existing rollover exit financing commitment.”

    Antonio M. Perez (pictured), Kodak’s chairman and chief executive officer, said: “the new financing, combined with other recent significant milestones in our restructuring – including the rights offering, Amended Plan of Reorganization, and Eastman Business Park settlement – will position Kodak for a bright long-term future.”

    The financing agreements are subject to conditions, including, among others, approval by the Bankruptcy Court, completion of definitive financing documentation, and a successful syndication in the loan markets.

    On 18 June, the graphic arts company said its key creditors agreed to backstop a $406 million rights offering for common stock in the company upon its emergence from Chapter 11 bankruptcy.

    Kodak said it expected to use the proceeds of the rights offering to fund distributions under its revised ‘Plan of Reorganization’, including the repayment of its second lien creditors, who will no longer receive equity in the Plan.

    Kodak said the proposed rights offering permits it to offer its creditors up to 34,000,000 shares of common stock for the per share purchase price of $11.94, equivalent to approximately 85 per cent of the equity of Kodak upon emergence.

    “Attracting this additional funding is a strong vote of confidence in both Kodak’s Plan of Reorganization and in the actions we have taken during our restructuring to create a solid future for our company,” said Perez. “This agreement, which serves as a critical component of the capital structure for the emerging Kodak, positions us to comprehensively settle our obligations with our various key creditor constituencies.”

    In May, Kodak said it expected to emerge from Chapter 11 Bankruptcy by September this year, after reporting a consolidated profit of (US)$283 million for the first quarter of 2013, a figure, which stood in stark contrast to the $-366 million loss it recorded for the same period last year.

    When Kodak does eventually emerge from bankruptcy, it will be a very different beast from the globally-recognised multinational leviathan it was prior to its filing for bankruptcy last year.

    Not only is the company now a much smaller operation than before, it will be primarily focused on its commercial print technology, severing most of its ties with the product range that made it famous, including film, cameras and other personal imaging technology.