The revised plan includes a new proposal, which is subject to court approval, for a $406m (£259m) rights issue involving shares in the ‘new’ Kodak. The issue of 34m shares will equate to around 85% of the new entity.
If approved, the ‘Backstop Commitment Agreement’ will allow Kodak to settle its obligations with various key creditors, according to a statement from chief executive Antonio Perez.
The proposal is being supported by Kodak’s committee of unsecured creditors, who are owed some $2.7bn, and is being backed by a number of the group’s major creditors: GSO Capital Partners, BlueMountain Capital, George Karfunkel, United Equities Group and Contrarian Capital.
Kodak filed its initial Chapter 11 emergence plan last month. It plans to create profitable revenue streams from a number of key technologies, including Stream inkjet and SquareSpot imaging tech.
Kodak aims to emerge from Chapter 11 protection in the third quarter.
The filing also states that Kodak’s board of directors upon emergence will consist of nine directors: an [unnamed] chief executive, six directors designated by the backstop parties and including James Continenza (who joined the board in April), and two directors selected by the creditors’ committee.
Kodak received a substantial vote of confidence earlier this month from major UK customer St Ives, which agreed a five-year supply deal with the company.