Kodak 2011 Annual Report Download - page 6

Bankruptcy Filing. A reorganization plan determines the rights and satisfaction of claims of various creditors and security holders, and is subject to the
ultimate outcome of negotiations and Bankruptcy Court decisions ongoing through the date on which the reorganization plan is confirmed.
Although the Company’s goal is to file a plan of reorganization, the Company may determine that it is in the best interests of the Debtors’ estates to seek
Bankruptcy Court approval of a sale of all or a portion of the Company’s assets pursuant to Section 363 of the Bankruptcy Code or seek confirmation of a
reorganization plan providing for such a sale or other arrangement.
The Company intends to propose a reorganization plan on or prior to the applicable date required under the Bankruptcy Code, as the same may be extended
with approval of the Bankruptcy Court. The Company presently expects that any proposed reorganization plan will provide, among other things,
mechanisms for settlement of claims against the Debtors’ estates, treatment of the Company’s existing equity and debt holders, and certain corporate
governance and administrative matters pertaining to the reorganized Company. Any proposed reorganization plan will be subject to revision prior to
submission to the Bankruptcy Court based upon discussions with the Company’
s creditors and other interested parties, and thereafter in response to creditor
claims and objections and the requirements of the Bankruptcy Code or the Bankruptcy Court. There can be no assurance that the Company will be able to
secure approval for the Company’s proposed reorganization plan from the Bankruptcy Court or that the Company’s proposed plan will be accepted by the
lenders under the DIP Credit Agreement, as discussed below. In the event the Company does not secure approval of the reorganization plan, the
outstanding principal and interest could become immediately due and payable.
Debtor
-in-Possession Credit Agreement
In connection with the Bankruptcy Filing, on January 20, 2012, the Company and Kodak Canada Inc. (the “Canadian Borrower” and, together with the
Company, the “Borrowers”) entered into a Debtor-in-Possession Credit Agreement as amended on January 25, 2012 (the “DIP Credit Agreement”). The
DIP Credit Agreement, provides for an aggregate principal amount of up to $950 million, consisting of up to $250 million super-priority senior secured
asset-based revolving credit facilities and $700 million super-priority senior secured term loan facility. Up to $25 million of the revolving credit facility
will be available to the Canadian Borrower and may be borrowed in Canadian Dollars. Refer to “Liquidity and Capital Resources” in Item 7,
”Management’s Discussion and Analysis (“MD&A”) of Financial Condition and Results of Operations” for further discussion of the terms of the DIP
Credit Agreement.
Chief Restructuring Officer
In connection with the Bankruptcy Filing, the Company hired James A. Mesterharm of AlixPartners as Chief Restructuring Officer to assist in the
implementation and execution of the Company’s reorganization plan.
REPORTABLE SEGMENTS
The Company reports financial information for three reportable segments: Consumer Digital Imaging Group (“CDG”), Graphic Communications Group
(“GCG”), and Film, Photofinishing and Entertainment Group (“FPEG”).
The balance of the Company's operations, which individually and in the aggregate
do not meet the criteria of a reportable segment, are reported in All Other.
The Company's sales, earnings and assets by reportable segment for these three reportable segments and All Other for each of the past three years are shown
in Note 25, “Segment Information,” in the Notes to Financial Statements.
2012 Reportable Segments
For 2012, the Company will report financial information for two reportable segments; Commercial Group and Consumer Group.
The Commercial Group will be comprised of the following: Graphics, Entertainment & Commercial Film Business, Digital and Functional Printing, and
Enterprise Services and Solutions.
The Consumer Group will be comprised of the following: Intellectual Property and the Consumer Business: Retail Systems Solutions,
Consumer Inkjet Systems, Traditional Photofinishing, and Digital Capture and Devices.
CONSUMER DIGITAL IMAGING GROUP (“CDG”) SEGMENT
CDG's mission is to enhance people’s lives and social interactions through the capabilities of digital imaging and printing technology. CDG’s strategy is
to drive profitable revenue growth by leveraging a powerful brand, a deep knowledge of the consumer, and extensive digital imaging and materials
science intellectual property.
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