Only two weeks ago, Eastman Kodak announced a plan to sell its document imaging business to Brother of Japan for $210 million.
Now the bankrupt film pioneer has struck an even more advantageous deal that paves the way for its exit from bankruptcy protection.
Kodak will instead spin off the document imaging unit, along with its personal imaging arm, to its British pension plan for $650 million in cash and noncash considerations. More important, the pension plan will settle its bankruptcy claim of $2.8 billion, paving the way for it to emerge from Chapter 11 in the United States. On Tuesday, Kodak plans to file a draft plan to emerge from bankruptcy.
It’s a turnaround for Kodak, which had previously sought to sell off the two imaging operations. But after a protracted sales process, the company reached an agreement to sell just one of them to Brother â€" with the proviso that it could revisit the deal if it could sell both personalized and document imaging together.
“In one comprehensive transaction, Kodak will realize its previously announced intention to divest its personalized imaging and document imaging businesses and settle its largest legacy liability,†Antonio M. Perez, Kodak’s chairman and chief executive, said in a statement.
