Court Approves Kodak's Comprehensive Settlement with U.K. Pension Plan

Court Approves Kodak's Comprehensive Settlement with U.K. Pension Plan

Settlement Includes Spin Off of Personalized Imaging and Document Imaging Businesses to KPP

Settles $2.8 Billion in KPP Claims

ROCHESTER, N.Y.--(BUSINESS WIRE)-- The U.S. Bankruptcy Court for the Southern District of New York today approved Kodak's previously announced comprehensive settlement agreement with the U.K. Kodak Pension Plan (KPP), the company's largest single creditor with respect to its Chapter 11 Plan of Reorganization. In approving the agreement, the Court described it as "a critical step forward in Kodak's effort to consummate its Plan of Reorganization." With the agreement, announced on April 29, Kodak's Personalized Imaging (PI) and Document Imaging (DI) businesses will be spun off under the ownership of KPP.

"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," said Antonio M. Perez, Kodak Chairman and Chief Executive Officer. "We look forward now to completing our reorganization and emerging as a company focused on Commercial Imaging."

Steven Ross, Independent Chairman of the Kodak Pension Plan, said, "I am delighted that the court has approved the settlement involving the transfer of the PI and DI businesses to KPP. This is by far the best option available for KPP, which is acquiring two profitable businesses that will provide substantial ongoing income to the fund. The income that these two businesses generate will enable KPP to remain outside of the Pension Protection Fund (PPF) and to offer our members a new pension plan that will provide all of them with better benefits than they would have received in the PPF. I am pleased to say that the feedback the Trustees are receiving from members at presentations currently being held around the UK is highly encouraging. I look forward to working alongside the management and staff of the PI and DI businesses - who have remained loyal and focused during this process -- as we build a firm future for them and for our members."

The consummation of the KPP settlement is expected to occur after confirmation of the company's Plan of Reorganization. Earlier this week, Kodak proposed rights offerings, an agreement with New York State on Eastman Business Park, and the engagement of arrangers for new financing, all key steps toward the confirmation of the company's Plan of Reorganization and emergence.

CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This document includes "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, goals, strategies, future events, future revenue or performance, capital expenditures, liquidity, financing needs, business trends, and other information that is not historical information. When used in this document, the words "estimates," "expects," "anticipates," "projects," "plans," "intends," "believes," "predicts," "forecasts," or future or conditional verbs, such as "will," "should," "could," or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements, including, without limitation, management's examination of historical operating trends and data are based upon the Company's expectations and various assumptions. Future events or results may differ from those anticipated or expressed in these forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include, among others, the risks and uncertainties described in more detail in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2012, under the headings "Business," "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources," and those described in filings made by the Company with the U.S. Bankruptcy Court for the Southern District of New York and in other filings the Company makes with the SEC from time to time, as well as the following: the Company's ability to successfully emerge from Chapter 11 as a profitable sustainable company; the ability of the Company and its subsidiaries to develop, secure approval of and consummate one or more plans of reorganization with respect to the Chapter 11 cases; the Company's ability to improve its operating structure, financial results and profitability; the ability of the Company to achieve cash forecasts, financial projections, and projected growth; our ability to raise sufficient proceeds from the sale of businesses and non-core assets; the businesses the Company expects to emerge from Chapter 11; the ability of the company to discontinue certain businesses or operations; the ability of the Company to continue as a going concern; the Company's ability to comply with the Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) covenants in its debtor-in-possession credit agreements; our ability to obtain additional financing; the potential adverse effects of the Chapter 11 proceedings on the Company's liquidity, results of operations, brand or business prospects; the outcome of our intellectual property patent litigation matters; the Company's ability to generate or raise cash and maintain a cash balance sufficient to comply with the minimum liquidity covenants in its debtor-in-possession credit agreements and to fund continued investments, capital needs, restructuring payments and service its debt; our ability to fairly resolve legacy liabilities; the resolution of claims against the Company; the Company's ability to retain key executives, managers and employees; the Company's ability to maintain product reliability and quality and growth in relevant markets; our ability to effectively anticipate technology trends and develop and market new products, solutions and technologies; and the impact of the global economic environment on the Company. There may be other factors that may cause the Company's actual results to differ materially from the forward-looking statements. All forward-looking statements attributable to the Company or persons acting on its behalf apply only as of the date of this document, and are expressly qualified in their entirety by the cautionary statements included in this report. The Company undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

About Kodak

Kodak is transforming into a B2B company focused on its Commercial Imaging business. Kodak will be centered on commercial, packaging and functional printing solutions and enterprise services, markets in which it offers customers advanced technologies that give them a competitive edge. The company also offers leading products and services in Entertainment Imaging and Commercial Films. For additional information on Kodak, visit kodak.com.

About Kodak's Personalized Imaging Business

The Personalized Imaging business leverages Kodak's unique imaging heritage, expertise and ongoing innovation to provide customers and end-consumers with high-quality products and services to meet their individual needs. The Personalized Imaging business consists of Retail Systems Solutions, the world leader in retail photo kiosks and dry lab systems, offering retailers a competitive advantage in the photo services market; Paper & Output Systems, offering photo specialty retailers, professional and wholesale labs, and photographers the broadest portfolio of traditional photographic paper and workflow solutions; Film Capture, offering consumers and professionals an award-winning range of still-camera film products; and Event Imaging Solutions, offering theme parks and other venues a total solution in souvenir photo operations.

About Kodak's Document Imaging Business

Kodak's Document Imaging business enables customers to capture and manage valuable information from electronic and paper documents. Our solutions include award-winning scanners and capture software, information workflow software, an expanding range of professional services, and industry-leading service and support. From small offices to global operations, Kodak has the solutions to automate your business processes and intelligently deliver the information your enterprise needs.

For more information, please visit kodak.com/go/dinews. Follow us on Twitter at twitter.com/kodakdi and visit our blog at infooverdrive.com.

Media:
Kodak
Christopher Veronda, +1 585-724-2622
christopher.veronda@kodak.com

KEYWORDS: United States North America New York

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