Eastman Kodak Co.
A Kodak Moment
On 1/18/2012 Eastman Kodak Co. filed for Chapter 11 Bankruptcy.
The most important factor effecting the recovery for distressed debt investors and traders that hold Kodak bonds will be the outcome of the sale of its digital imaging patent portfolio. What irony, the technology that Kodak created is what caused its demise.
Kodak plans on using the bankruptcy process to monetize its digital imaging patent portfolio via a Section 363 sale.
Below the first lien super priority Dip, currently $450 million, there is $750 million of second lien debt:
$500 million 9 3/4 due 3/1/18 price 92
$250 million 10 5/8 due 3/15/19 price 92
We expect a recovery for distressed debt investors, which will include pre and post petition interest, of approximetely 115. Our opinion is based on the senior position these securities have in Eastman Kodak's capital structure, and expect a full recovery for this claim.
For more information on the Eastman Kodak bankruptcy or any other company we follow contact Performance Plus Advisors, Inc.
727-441-1305 ext 201
Stephen P. Vlahos
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