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Eastman Kodak announced it has reached an agreement with major financial institutions on a bankruptcy exit financing package.
Kodak said the deal with J.P. Morgan, Bank of America, Merrill Lynch and Barclays includes $895 million in debt financing.
The U.S. Bankruptcy Court approved a settlement between the company and its largest creditor, the U.K. Kodak Pension Plan. The settlement includes the spin off of Kodak's Personalized Imaging and Document Imaging Businesses to KPP.
Kodak Chairman and CEO Antonio Perez said in a statement: "We have been working in close cooperation with KPP to achieve a smooth transition for our PI and DI employees and customers to a new owner, one who clearly recognizes the value of these businesses and intends to help them grow and succeed."
Kodak said the deal will enable the company to replay all of its creditors when it emerges from bankruptcy. It will aslo finance the company's exit from Chapter 11 bankruptcy.
"What this does not tell us is how good business is going to be for Kodak when they get out of bankruptcy. They're a small player in competitive markets, but it is an encouraging sign that these banks were willing to provide this type of financing for them," said Brennan Redmond, vice president of Brighton Securities.
CEO Antonio Perez said the deal will position Kodak for a "bright long-term future".
The bankruptcy court must approve the deal before it can be finalized