Staff
Kodak has signed an agreement to sell two divisions to its British pension plan for US$650 million.
The deal settles about $2.8 billion of claims by the U.K. Kodak Pension Plan (KPP), the company’s largest creditor.
“In one comprehensive transaction, Kodak will realize its previously announced intention to divest its personalized imaging and document imaging business and settle its largest legacy liability,” says Antonio M. Perez, Kodak’s chair and chief executive.
“The businesses that we are acquiring will deliver long-term cash flows to support the plan’s obligations,” explains Steven Ross, chair of KPP.
The agreement, which is subject to court approval, will help Kodak move one step closer to emerging from bankruptcy protection.
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