Eastman Kodak Co. (fka EKDKQ)

[linie]

Kodak details projected post-bankruptcy financials
By MIKE DICKINSON
Rochester Business Journal
October 12, 2012
Eastman Kodak Co. on Friday provided a look at its projected post-bankruptcy financials and announced it is ready to begin discussions with key creditor groups on its reorganization plan.

Kodak, in a filing with the Securities and Exchange Commission, projects pro-forma revenues for its Commercial Imaging business of $2.73 billion in 2013, with $1.2 billion in the first half and $1.52 billion in the second half.

It projects those revenues to climb to $2.85 billion in 2014 and $3.04 billion in 2015.

Kodak also forecasts total operating cash flow of $170 million in 2013, $243 million in 2014 and $285 million in 2015.

The Commercial Imaging business—which is focused on commercial, packaging and functional printing solutions and enterprise services—will form the company upon emergence from bankruptcy, Kodak said.

Kodak expects to exit Chapter 11 bankruptcy in the first half of 2013. It filed for bankruptcy protection Jan. 19.

The pro-forma projections take into account previously announced portfolio strategy decisions, such as plans to divest the document imaging and personalized imaging businesses, as well as wind down sales of consumer inkjet printers and focus on servicing its installed base of customers.

The revenue growth over the next three years is expected to come from Kodak’s digital printing and enterprise segments, projected to amount to $833 million in 2013, $1.11 billion in 2014 and $1.37 billion in 2015.

Kodak projects its graphics, entertainment and commercial films segment to decline slowly from $1.72 billion in 2013 to $1.69 billion in 2014 and $1.64 billion in 2015.

The company said it was disclosing the projections to facilitate discussions with the widest possible group of stakeholders, including holders of publicly traded securities.

“As we move forward to emergence and explore an array of financing options, we believe there is confidence and interest among the financial community in our Commercial Imaging business and its future business plans,” said Chairman and CEO Antonio Perez in a statement. “We are gratified that there appears to be interest among several potential lenders to finance this business and its emergence, and with this disclosure, we are now better positioned to explore these funding opportunities.”

The Wall Street Journal reported Friday that Kodak is seeking several hundred million dollars in financing from hedge funds and other investors holding its debt. Firms taking part in the discussions with Kodak include Centerbridge Partners, GSO Capital Partners, Litespeed Partners and J.P. Morgan Securities, the newspaper reported in its Deal Journal blog.

Kodak last month announced it would reduce its global workforce by more than 3,900 positions in 2012.

As part of its annual planning process for 2013, the company will develop a detailed headcount budget, including the savings from the workforce reduction and the potential costs or benefits associated with the separation of the document imaging and personalized imaging businesses, Kodak states in the filing. That planning process is scheduled to be completed in late November.

On Wednesday, Kodak said it had reached a proposed agreement to end its retiree benefits program that includes medical, dental, life insurance and survivor income benefits.

http://www.rbj.net/article.asp?aID=192759