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While members of the theatrical exhibition community are gathered at next week’s CineEurope conference, Kodak will be in a New York courtroom on June 25 for a key hearing in the company’s effort to emerge from chapter 11 bankruptcy and continue to produce film stock.
The future of Eastman Kodak, since it filed for chapter 11 bankruptcy protection in early 2012, has been a closely watched subject in exhibition, as well as other areas, including of course production. Numerous execs predict that the end of delivering film prints in North America is rapidly approaching, though many also are hoping that film will continue to co-exist with digital.
STORY: Bankruptcy Judge Cancels Kodak’s Agreement With Sony Pictures
Next week Kodak will ask the court to approve a $406 million rights offering to key creditors as part of a plan to help the film manufacturer to emerge from chapter 11. Kodak expects to use the proceeds to fund distributions under a revised Plan of Reorganization (filed on Tuesday), including the repayment of its second lien creditors, which would no longer receive equity as part of the proposed reorganization plan.
The proposed rights offering would permit Kodak to offer its creditors up to 34 million shares of common stock for the per share purchase price of $11.94, equivalent to approximately 85 percent of the equity of Kodak upon emergence.
“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,” said Antonio M. Perez, Kodak’s chairman and CEO.
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