Eastman Kodak

Kodak Plan to End Retiree Benefits

Oct 11, 2012

Eastman Kodak wants to terminate retiree benefits by the end of the year.
It says it has reached agreement with its Official Committee of Retirees to eliminate medical, dental, life insurance and survivor income benefits for tens of thousands of former workers.
The company says it will provide the Committee with 7 and a half million dollars in cash, a 15-million dollar administrative claim and 635-million dollar unsecured claim to subsidize a limited portion of future benefit costs.

Eastman Kodak says it needs more time to reorganize, and is cutting more jobs.
The company says it plans to submit a motion in Bankruptcy Court today highlighting its restructuring accomplishments so far, and will ask the court to extend until February 28th, 2013 its exclusive right to file a plan of reorganization.
Kodak says the extension will help the company successfully emerge from bankruptcy in the first half of next year.
A hearing to consider that motion and other matters is scheduled for October 17th.

Wednesday was supposed to be the day Kodak would announce the outcome of its auction of over a thousand technical patents to bidders in the imaging and communications fields. But as of now, there has been no announcement, and possibly no sale.

This is the latest bump in the road toward Kodak's planned recovery from bankruptcy. The company had hoped to raise over $2 billion from the sale, but initial bids reportedly came in at a fraction of that amount.

Eastman Kodak's rise was largely due to what was inside that little yellow box.  But still film also helped bring about Kodak's decline, and this week the company announced it is exiting the still film business altogether.  Matt Daneman, business reporter for the Democrat & Chronicle, shares the latest with Need to Know Rochester host Julie Philipp.