Eastman Kodak Company (PINK:EKDKQ)’s $210 billion imaging handshake with Brother

Boston, MA 04/16/2013 (wallstreetpr) – The now bankrupt photography pioneering company, Eastman Kodak Company (PINK:EKDKQ) (Closed: $0.299, Down by 0.66%) has agreed to sell its document-imaging assets to BROTHER INDUSTRIES, LTD (TYO:6448) (Closed: 1071.00 JPY, Down by 1.74%), the office equipment company for an amount of around $210 million which is not the set minimum bid for the auction. In a statement, the companies have said that any deal will necessitate the approval of the judge who is overseeing the New York-based company’s bankruptcy case. Around $67 million worth of customer repayment liabilities are also included in the Nagoya, Japan –based Brother’s bid.

Divesting its businesses

In January 2011, Kodak sought Chapter 11 protection and is now selling its businesses in an effort to downsize and also fund its move into commercial packaging and printing. In December, Antonio Perez, the Chief Executive Officer sold a few of the company’s digital imaging patents for around $525 million and is now looking for prospective buyers for Kodak’s photo-kiosks and consumer films divisions. He will also be downing shutters on the consumer inkjet-printer unit. Under a financial agreement, the company has to make good progress with selling its various business units to raise cash. This will help it move out of bankruptcy status in the first half of 2013.

The bankruptcy

Kodak said that once the sales procedures have received approval, an initial bidder auction procedure will be run with Brother. Brother deals in fax and printer machines and the Kodak deal will add image capture services, scanners as well as technical services to the company. An increase in the demand for digital photography ate into Kodak’s film business and the company eventually had to file for bankruptcy after several years of using up its cash reserves. Last year, the company had also cut close to 4,000 jobs and gone through $3.4 worth of restructuring procedures before its bankruptcy.

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Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email (brendanbyrne@wallstreetpr.com) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).