By Stephanie Gleason
Eastman Kodak Co. (EKDKQ) announced that Chief Executive Antonio
M. Perez will leave the company no later than one year after it
emerges from Chapter 11 bankruptcy protection.
The company's board of directors will name a successor to Mr.
Perez within that year, according to an announcement Tuesday. After
he steps down as CEO, Mr. Perez will continue on as a consultant
for Kodak for another two years and will serve on the board for up
to three years.
Mr. Perez joined Kodak in 2003 from Hewlett-Packard Co. (HPQ).
He has served as CEO throughout the company's restructuring in
Chapter 11.
The management team for the post-bankruptcy Kodak, which
includes five other executives who will continue on in their
current roles, has already been approved by its new owners and will
"ensure continuity" as Kodak continues to implement its new
business model, according to the announcement.
Kodak is poised to leave Chapter 11 as a leaner company focused
on commercial imaging, including digital printing and
motion-picture film.
The company's bankruptcy-exit plan includes a $406 million
rights offering for 85% of Kodak's reorganized stock, which would
hand control of the company to a group of key creditors. The
proceeds of that offering will be used to repay second-lien
bondholders owed $375 million.
Kodak also resolved a $2.8 billion claim owed to its U.K.
pension plan by handing the company's personalized-imaging and
document-imaging businesses to the pension plan.
The U.S. Bankruptcy Court in Manhattan is slated to consider
confirmation of the restructuring plan on Aug. 20, setting Kodak up
to wrap up its bankruptcy case by September.
The Rochester, N.Y., company filed for Chapter 11 in January
2012. It has shed employees and its unprofitable businesses during
its Chapter 11.
-Joseph Checkler contributed to this article.
(Dow Jones Daily Bankruptcy Review covers news about distressed
companies and those under bankruptcy protection. Go to
http://dbr.dowjones.com)
Write to Stephanie Gleason at stephanie.gleason@wsj.com
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