Eastman Kodak Will Sell Assets To Raise $210M; Trying To Work Itself Out of Bankruptcy

By

Eastman Kodak is going to sell some of its assets to raise $210 million in cash as it continues to work its way out of bankruptcy.

Brother Industries Ltd. will purchase the assets from Kodak, and it will assume liability for deferred service revenue related to the document imaging business, news reports said. The liability totaled about $67 million as of Dec. 31. The liability was defined as “debt that raises the value of the transaction,” according to a report from Motley Fool.

Kodak has to get the U.S. Bankruptcy Court to approve the deal. A hearing is expected to take place late this month. The approval, if given, could be declared in June. Bids from other companies are possible, too.

"A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging's customers, partners and employees," Kodak CEO Antonio M. Perez was quoted as saying by Motley Fool.

Overall, Kodak plans to sell its personalized imaging business and get out of bankruptcy later this year, Reuters said. Kodak filed for Chapter 11 bankruptcy protection in January 2012.

The company has to raise at least $600 million by selling noncommercial imaging assets, Reuters said.

Kodak’s document imaging business provides customers scanners, capture software, services and other items. Brother provides laser, label and multi-function printers, fax machines, and sewing machines, The Associated Press reports.

In December, Kodak sold some of its digital-imaging patents for about $525 million, Bloomberg News reported. It is trying to sell consumer-film and photo-kiosks, too, the report said. The consumer inkjet-printer business will be closed down.

Also, Kodak eliminated some 4,000 jobs during 2012. The company spent $3.4 billion on restructuring before declaring bankruptcy, Bloomberg said.

In addition, Apple, Google, and Microsoft were recently awarded 1,100 digital imaging patents from Kodak by a bankruptcy court, TechZone360 reported.


Edited by Rory J. Thompson

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Turning Data into Stories with Natural Language Generation

By: Erik Linask    7/29/2020

Arria's NLG technology takes the burden of storytelling from data analysts by using artificial intelligence to turn data into narrative.

Read More

Benefits of using bitcoins for business

By: Special Guest    7/29/2020

Bitcoin is a digital cryptocurrency that is used by many people to make payments. Indeed, online retail stores are accepting bitcoins as a mode of pay…

Read More

Intelligent Defect Inspection: How Computer Vision Enhances Quality Control

By: Special Guest    7/28/2020

Business competition pressures manufacturers to produce faster, reduce expenses, and increase efficiencies. But all these requirements run into the qu…

Read More

It's Online Collaboration's Time to Shine: Are You Surfing the Wave or Sinking Under It?

By: Special Guest    7/27/2020

What should also be obvious to UCaaS providers is this is a rare opportunity. Unfortunately, too many appear satisfied with letting this wave roll by …

Read More

What Technology Does My New Business Need?

By: Special Guest    7/20/2020

Technology has helped to revolutionise business in several different ways, but with productivity at the heart of every business, technology is needed …

Read More