Bankruptcy Court Grants Kodak to Borrow Money, Stop Sponsorships

February 16th, 2012 at 10:16 pm

In Kodak‘s road to recovery, the struggling imaging company has received court approval to borrow $950 million in restructuring funds. This comes almost a month after Kodak filed for Chapter 11 bankruptcy.

US Bankruptcy Judge Allen Gropper decided in favor of Kodak’s request today, allowing it to continue operations during this trying transition. The court decision also grants Kodak permission to halt sponsorship of the Kodak Theatre in Los Angeles, which the company argues would be in the best interest of all parties involved. According to the deal, Kodak is obliged to pay the venue $72 million for 20 years, currently shelling out $3.6 million and still has $38 million of outstanding balance.

“Today’s agreement is another step towards ensuring that Kodak is positioned to execute on the goals the Company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities, and enable Kodak to focus on its most valuable business line,” Kodak Chairman and CEO Antonio Perez said in a statement.

Source: Bloomberg, via Engadget


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