All right, this is something of a surprise: When Kodak announced it was selling off its Personalized Imaging and Document Imaging businesses, no one predicted that the buyer would be the company’s own pension plan.
But it’s not the retirees in Rochester who are the new owners of their former business — it’s those in the United Kingdom, strangely enough… and they didn’t buy it.
Instead the transfer is a settlement: the U.K. Kodak Pension Plan was the largest creditor in Kodak’s Chapter 11 Plan of Reorganization.
The new agreement will be filed with the U.S. Bankruptcy Court, and will spin off the imaging business to KPP, “for cash and non-cash consideration of $650 million,” Kodak says. The agreement also settles approximately $2.8 billion of claims by KPP.
“This acquisition provides security for and delivers the greatest value to, the KPP members,” KPP said. “Overall, this settlement gives the KPP members greatly improved future prospects whilst being good for Kodak’s employees, its creditors and for UK businesses. The businesses that we are acquiring will deliver long-term cash flows to support the plan’s obligations. The financial stability that KPP will provide for the Personalized Imaging and Document Imaging businesses will be beneficial to those businesses’ employees, customers and partners.”
The Personalized Imaging business provides retail photo kiosks and dry lab systems, traditional photographic paper, still-camera film products, and the event imaging solutions for theme parks and other venues.
Kodak will focus on its Commercial Imaging business.