The U.S. Bankruptcy Court for the Southern District of New York confirmed Kodak’s plan of reorganization on Tuesday. The plan outlines the 125-year-old company’s strategy to emerge from Chapter 11 restructuring after 18 months. 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 Sept. 3.
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.”
Kodak has used the Chapter 11 process to reduce legacy costs, liabilities and infrastructure, exiting or spinning off businesses and assets that were no longer core to its future.
“This critically important milestone marks the final step in the Court process,” said Antonio Perez, 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.”
“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,” he added.