Kodak 2014 Annual Report Download - page 119

Refer to explanation #18 for the determination of fair value for equity issued to unsecured creditors.
The net gain on reorganization adjustments has been included in Reorganization items, net in the Consolidated Statement of Operations.
(11)
On the Effective Date, the Company repaid in full all term loans outstanding under the Junior DIP Credit Agreement for an aggregate remaining principal amount of
approximately $644 million offset by $3 million of unamortized debt discount that was written off upon repayment of the debt and is included in Reorganization items, net
in the Consolidated Statement of Operations.
(12)
Represents $4 million of principal amount recorded as short-term borrowings pursuant to the terms of the Emergence Credit Facility.
(13)
On the Effective Date, the Company paid $7 million of accrued and unpaid interest related to the repayment of debt and $10 million in administrative claims that was
included within Other current liabilities.
(14)
Represents $29 million in claims expected to be settled in cash and $9 million of liabilities that have been retained by Kodak in accordance with the Plan that have been
reclassified from Liabilities subject to compromise.
(15)
On the Effective Date, the Company repaid in full all loans outstanding under the 9.75% senior secured notes due 2018 and 10.625% senior secured notes due 2019 for an
aggregate principal amount of approximately $375 million offset by $5 million of unamortized debt discount that was written off upon repayment of the debt and is
included in Reorganization items, net in the Consolidated Statement of Operations.
(16)
Upon issuance of the Term Loans under the Emergence Credit Facility, the Company received net proceeds of approximately $669 million, of which $4 million of the
principal amount of the loans is recorded as short
-
term borrowings pursuant to the terms of the Emergence Credit Facility.
(17)
Liabilities subject to compromise were settled as follows in accordance with the Plan:
(in millions)
Liabilities subject to compromise of the Predecessor Company (LSTC)
$
2,475
Cash payments at emergence from LSTC
(84
)
Claims expected to be satisfied in cash
(35
)
Liabilities reinstated at emergence:
Pension and other postretirement liabilities
(156
)
Environmental obligations
(61
)
Other current liabilities
(9
)
Total liabilities reinstated at emergence
(226
)
Fair value of equity issued to unsecured creditors
(85
)
Fair value of warrants issued to unsecured creditors
(24
)
Gain on settlement of liabilities subject to compromise
$
2,021
(18)
Reflects the issuance of 34 million shares of common stock at a per share price of $11.94 in connection with the Rights Offering, 6 million shares of common stock issued
to the holders of general unsecured and retiree committee unsecured claims valued at $14.11 per share, 1.7 million shares of common stock valued at $14.11 per share
issued to the Backstop Parties in connection with the Backstop Commitment Agreement, 0.1 million shares of common stock issued under Kodak’
s 2013 Omnibus
Incentive Plan on the Effective Date, and issuance of warrants valued at $24 million.
(19)
Reflects the cancellation of Predecessor Company equity to retained earnings.
(20)
Reflects the cumulative impact of the reorganization adjustments discussed above:
(in millions)
Gain on settlement of liabilities subject to compromise
$
2,021
Fair value of shares issued to Backstop Parties and employees
(25
)
Write
-
off of unamortized debt discounts and debt issuance costs
(14
)
Success fees accrued at emergence
(13
)
Emergence and success fees paid at emergence
(9
)
Write-off of deferred equity issuance costs
(3
)
Net gain on reoganization adjustments
1,957
Cancellation of Predecessor Company equity
(3,628
)
Net impact to Retained earnings (deficit)
$
(1,671
)
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