Posted at: 10/10/2012 5:43 PM
Updated at: 10/12/2012 6:18 AM
Kodak has just announced an agreement in principle with the official committee of retirees. The deal will end benefits at the end of this year for those not yet eligible for Medicare in return for a cash payout.
The amount of that payout is contingent upon Kodak’s successful emergency from bankruptcy.
Under the deal, the committee will make payments to retirees to subsidize a portion of their future costs for medical, dental, life insurance and survivor income benefits. Kodak expects to save roughly 10 million dollars a month.
Kodak CEO Antonio Perez said, “"With this proposed resolution to our U.S. retiree benefit legacy liabilities, Kodak takes a major step forward toward our successful emergence. Today's agreement is a decisive accomplishment toward one of our fundamental objectives in our restructuring. At the same time, Kodak continues to make progress in the other important restructuring areas as we prepare Kodak for emergence. We are appreciative of the hard work and engagement of the 1114 Committee that helped us reach this agreement and of the great contributions of our retirees."