Replies to post #12306 on Eastman Kodak Co. (fka EKDKQ)

[ChuckD-MSB]

They can class action all they want, but with the unsecured creditors only getting paid .04-.05 on the dollar there is no chance they win.

[Itza-Sherbet]

Yes but they have been trying to do that. One was dismissed in Nov. and one was dismissed in Feb. The company gave ample notice of their intentions, an entire year ago. A lawsuit will not succeed, and I think this is buying due to promo somewhere touting good news for Kodak, and putting news of cancellation in fine print at the bottom if at all. Is there anyone here who really thinks these shares will not go to zero come Sept 3rd?

[JohnCM]

Does not look like the common stands a chance. Staying away ...

"Because Kodak's plan cancels all existing shares and doesn't offer any payment to current shareholders, they weren't eligible to vote on the plan. Individual shareholders have filed objections to the plan in bankruptcy court, however, insisting that Kodak is worth more than it says and that some of that value should trickle down to them.

The Manhattan bankruptcy court disagrees, concluding this week that the evidence shows that Kodak is worth far less than the amount it owes its various creditors. Shareholders can't recover anything in Chapter 11 unless all creditors have been paid in full."

"The court recognizes that if Kodak's current plan is confirmed, its shareholders will lose their entire investment. However, its creditors, who include employees who may have lost their jobs, retirees who worked for Kodak for their entire careers, and small suppliers who may have been dependent on Kodak for their business, will also suffer great losses," Judge Allan L. Gropper wrote. "These creditors did not take an investment risk when they contracted with Kodak, and under the Bankruptcy Code they are entitled to recover before the shareholders."

"Judge Gropper, of the U.S. Bankruptcy Court in Manhattan, will consider approving Kodak's restructuring plan at a hearing Tuesday."