Eastman Kodak Co. (EKDKQ:US) lined up $895 million in loans under agreements with JPMorgan Chase & Co. (JPM:US), Bank of America Corp. (BAC:US) and Barclays Plc (BARC) as the bankrupt photography pioneer seeks to end its reorganization.
The three banks will serve as the lead arrangers for $695 million of senior secured term loans and a revolving credit line of as much as $200 million, Rochester, New York-based Kodak said today in a statement.
The financing is an “essential component” for Kodak’s exit from bankruptcy protection, the company said in court papers in U.S. Bankruptcy Court in Manhattan, which must approve Kodak’s agreements with the banks.
Kodak filed for bankruptcy in January 2012 and has been selling assets to reorganize around its commercial imaging business. It is scheduled to ask U.S. Bankruptcy Judge Allan Gropper at a June 25 hearing to allow creditors to vote on its restructuring plan. It intends to exit bankruptcy within 90 days, according to court papers.
The bankruptcy-exit financing comes after Kodak said June 18 that creditors including GSO Capital Partners and BlueMountain Capital have agreed to backstop a $406 million rights offering for 85 percent of the equity in the reorganized company.
In April, Kodak said it was spinning off its personalized-and document-imaging businesses to its U.K. pension plan, settling $2.8 billion in claims against the company. Last year, it agreed to sell patents to a group of technology companies including Apple Inc. for about $525 million.
Bank of America, JPMorgan and Barclays have committed $130 million of the $200 million revolving credit facility, according to court papers. They will syndicate the rest of the financing, which will be used to pay secured creditors and fund working capital and liquidity needs, Kodak said.
Kodak’s financial adviser is Lazard Ltd. and its law firm is Sullivan & Cromwell LLP.
The bankruptcy case is In re Eastman Kodak Co., 12-bk-10202, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
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