Eastman Kodak Company EKDKQ has completed a series of agreements that successfully
monetizes its digital imaging patents.
The proposed transaction, which achieves one of Kodak's key restructuring
objectives, follows other recent major accomplishments that include an
agreement for interim and exit financing for the company's emergence from its
Chapter 11 restructuring, and resolution of U.S. retiree non-pension benefits
liabilities. Kodak's monetization of IP assets further builds on its momentum
toward a successful emergence in the first half of 2013.
Under the agreements, Kodak will receive approximately $525 million, a portion
of which will be paid by 12 intellectual property licensees organized by
Intellectual Ventures and RPX Corporation, with each licensee receiving rights
with respect to the digital imaging patent portfolio and certain other Kodak
patents. Another portion will be paid by Intellectual Ventures, which is
acquiring the digital imaging patent portfolio subject to these new licenses,
as well as previously existing licenses.
“This monetization of patents is another major milestone toward successful
emergence,” Antonio M. Perez, Chairman and Chief Executive Officer, said. “Our
progress has accelerated over the past several weeks as we prepare to emerge
as a strong, sustainable company. This proposed transaction enables Kodak to
repay a substantial amount of our initial DIP loan, satisfy a key condition
for our new financing facility, and position our Commercial Imaging business
for further growth and success.”
The transaction enables the company to continue innovating in its core
Commercial Imaging technologies that are fundamental to its future. Commercial
Imaging is a business in which Kodak has significant competitive advantages
and strong growth prospects.
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