Client Highlight: Kodak

Client Highlight: Kodak

S&C brings its signature creativity to Kodak's Chapter 11 case, resolving a series of interlocking legal challenges.

Kodak was looking for new restructuring ideas when S&C was awarded the mandate in late 2011. The imaging giant was shifting its focus to new technologies, including innovative new printing methods, but in order to survive it needed to overhaul its business and manage its legacy liabilities.
 
But Kodak’s size and structure made restructuring the company difficult. In particular, significant pension liabilities and their attendant costs were a significant impediment to a successful restructuring.
 
S&C brought its signature creativity to what became a Chapter 11 case, resolving a series of interlocking legal challenges, including:

  • the monetization of Kodak’s storied digital imaging patent portfolio through a court-supervised auction;
     
  • litigation related to the portfolio sale and other licensing agreements, including successful defense of an attack on the ownership of certain Kodak patents that threatened the sale;
     
  • the precedent-setting sale of Kodak’s consumer businesses to the company’s largest creditor, the U.K. Kodak Pension Plan, in full settlement of legacy pension liabilities; and
     
  • raising almost $900 million of exit financing with new investment in reorganized Kodak.
Kodak exited Chapter 11 in September 2013 as a reinvented company after building consensus among all creditor groups. Today, the company is re-listed on the New York Stock Exchange and is moving forward as a business-to-business company with world-leading digital printing, packaging and functional printing technologies.