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Kodak patent sale approved

Posted at: 01/11/2013 6:04 PM
By: Joangel Concepcion

Kodak's $525 million patent sale was approved by a bankruptcy judge. The deal is considered an important milestone in Kodak's bankruptcy, a move that experts say, will put them on the road to recovery.

Financial experts says they knew the sale was essentially a done deal, but Friday, it became official, Kodak will sell its patents for $525 million.

The company filed for bankruptcy protection back in January 2012 and began auctioning their patents in August. They hoped to sell the patents for more than $2 billion. That did not happen.

The $525 million will go towards paying back creditors. This is considered a milestone for Kodak. Financial experts say this was a major hurdle. Experts say they still have a few bumps in the road before they are in the clear and out of bankruptcy protection.

George Conboy, Brighton Securities President, said, “What it means for everyone interested in the continuing future of Eastman Kodak, whether they are an employee, a creditor, virtually anyone involved with the company. Suppliers, you name it. It means that Kodak has one more thing in favor of actually emerging from bankruptcy, a functioning company. The failure of this patent sale, had they not been able to sell, could potentially have led to liquidation. Now I think we have a very smooth path for Kodak to emerge from bankruptcy.”

Financial experts say there are a few hurdles to jump over within the next few months like the sale of digital imaging, the personalized imaging businesses and the resolution of British pension liabilities. Those two major stepping stones will be the last obstacles to getting Kodak out of bankruptcy.

Experts say they expect the company to emerge from bankruptcy in the middle of the year.

 

 

The $525 million will go towards paying back creditors. This is considered a milestone for Kodak. Financial experts say this was a major hurdle. Experts say they still have a few bumps in the road before they are in the clear and out of bankruptcy protection.

 

George Conboy, Brighton Securities President, said, “What it means for everyone interested in the continuing future of Eastman Kodak, whether they are an employee, a creditor, virtually anyone involved with the company. Suppliers, you name it. It means that Kodak has one more thing in favor of actually emerging from bankruptcy, a functioning company. The failure of this patent sale, had they not been able to sell, could potentially have led to liquidation. Now I think we have a very smooth path for Kodak to emerge from bankruptcy.”

 

Financial experts say there are a few hurdles to jump over within the next few months like the sale of digital imaging, the personalized imaging businesses and the resolution of British pension liabilities. Those two major stepping stones will be the last obstacles to getting Kodak out of bankruptcy.

 

Experts say they expect the company to emerge from bankruptcy in the middle of the year.