Skip to comments.Sell Kodak before itís bankrupt
Posted on 01/08/2012 6:02:31 PM PST by Hojczyk
Investors who have not yet sold their holdings in EK should get out while they still can.
Management must have known about the massive gap between the company's assets and liabilities for some time, at least a year or more. Given that they have not, in this time, been able to monetize the company's patent portfolio at a level that could save the company, it is fair to assume that the court-supervised auction dictated by Chapter 11 bankruptcy will not do much better.
Instead, we can expect a fight from the company's employees for as much of the benefits promised them as possible. Given that they will likely have to accept a large hair cut on what was promised them, I doubt they will be very sympathetic to the equity holders.
In other words, EK equity holders should not expect any cash to be left over for them after the company addresses its $2.6 billion obligation to its employees and its $1.5 billion obligation to its debt holders.
Note the $2.6 billion pension deficit and the $1.5 billion debt load are based on most recent data available, the company's 2010 10-K.
(Excerpt) Read more at marketwatch.com ...
Obama... here’s your chance to get the Government in the PRINTER and PHOTOGRAPHY BUSINESS.../s
ITT bought Kodak’s Geo-Spatial systems unit at Kodak Park West in 2005.
Thanks - I didn’t know that ITT Defense bought a Kodak unit in 2005, after the conglomorate ITT sold off $$ billions of companies in the mid eighties, then spliting itself up into three independent units; which again split itself up into three new independent units in 2011.