Bad news out: May 31, 2013: Kodak posts loss in month that saw its exit plan introduced.
This was located in this PR, I quote "Current shareholders are slated to see nothing."
Eastman Kodak Co. (EKDKQ) said it lost $46.3 million, including $11.5 million in reorganization charges, in the weeks leading up to its Chapter 11 plan debut.
The photography company brought in $127.8 million in revenue during the month of April, a drop from $169.7 million in March, according to bankruptcy-court papers. However, its loss declined from the month prior; Kodak reported a $66.7 million loss in March. That month's numbers included $13.8 million in reorganization charges.
The law firm that the company tapped to help it navigate bankruptcy, Sullivan & Cromwell LLP, charged Kodak a total of $5.7 million for the month of April, including fees and expenses.
Among the tasks that Sullivan & Cromwell lawyers took on in April was work on the company's bankruptcy-exit proposal. That month, they devoted 987.2 hours to helping the company engineer its plan and the plain-language plan outline that creditors will use to guide their votes. Their plan-related work accounted for some $643,386 in fees.
Kodak capped off last month by filing its Chapter 11 plan with the court. The proposal, filed in the last hours on the last day in April, would hand ownership of the company to its bondholders and unsecured creditors. Second-lien noteholders owed $375 million are poised to receive 85% of the new common stock in the restructured Kodak, should the proposal win the blessing of a bankruptcy judge. Assuming the company is worth $441 million at the time it exits Chapter 11 protection, as it expects, the bondholders' controlling stake would be worth $374.85 million.
The remaining 15% of shares, worth $66.15 million, would go to unsecured creditors who are estimated to be owed between $1.6 billion and $2.2 billion. Kodak's retirees, a group owed $635 million under a settlement with the company, would also share in that stock distribution.
Current shareholders are slated to see nothing.
The plan also weaves in a settlement that would hand control of the company's personalized-imaging and document-imaging business to Kodak's U.K. pension plan to satisfy a $2.8 billion claim.
Kodak sought bankruptcy protection in January 2012 and finished that year with a net loss of $1.38 billion, including $1.07 billion in reorganization and restructuring costs.
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