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Kodak sells film and kiosk businesses to UK pension scheme

By Richard Butler on May 1, 2013 at 18:08 GMT

Kodak hopes to sell its consumer film and processing kiosk businesses to its UK pension scheme, to allow it to emerge from Chapter 11 bankruptcy. The move pays off the company's biggest debt - an estimated $2.8bn it was expected to have to pay to the scheme over the coming years. The pension scheme is reported to be paying $650m for the Personalized Imaging and Document Imaging units the company announced it would sell last August.

The deal leaves Kodak with no direct involvement in consumer photography. The sale covers the Personalized Imaging business, which includes print kiosks and consumer film, along with the Document Imaging business, that includes scanners and commercial document management.

It is unclear whether the pension scheme hopes to keep the businesses or if it will sell them on. Either way, the Financial Times reports that the 15,000 scheme members will face reduced pension payouts, as it is unlikely the businesses will generate as much money as Kodak was expected to pay. In the same article a pensions consultant has called on the scheme to justify the decision to accept the businesses, rather than letting Kodak be liquidated and claiming a share of the proceeds.

The remainder of Kodak has now said it expects to emerge from bankruptcy as soon as July. In January, the company announced California-registered JK Imaging will license the Kodak name and attach it to various cameras, including Micro Four Thirds models.

Comments

Total comments: 14
Alec
By Alec (8 months ago)

Yay, PENSION film!
"For retirees, by retirees"

Comment edited 2 times, last edit 2 minutes after posting
0 upvotes
peevee1
By peevee1 (11 months ago)

$650?

0 upvotes
Samuel Dilworth
By Samuel Dilworth (11 months ago)

There’s a missing m. Selling film is still a profitable business, after all – just far less so than it once was.

0 upvotes
Richard Butler
By Richard Butler (11 months ago)

There is a missing 'm', yes. Sorry for that.

It does suggest the pension scheme believes it's more likely to make some money out of these businesses than it would by becoming a major shareholder in post-Chapter 11 Kodak.

2 upvotes
David Fell
By David Fell (11 months ago)

Is it me, but a pension Co buying this seems a bit weird, where is the synergy? Seems that dim-witted managers see a quick buck getting this for $650 and make a quick win, inevitably it sold for $650 as that is what its worth, thus no quick wins to be had... Shame, another icon goes along with Marconi and others.

0 upvotes
Samuel Dilworth
By Samuel Dilworth (11 months ago)

I think the synergy is that both pensioners and Personalized Imaging are heading off into the sunset.

2 upvotes
Antony John
By Antony John (11 months ago)

Don't Kodak have a US pension fund they could off-load their kiosks to instead?
Or would that not be allowed?

0 upvotes
Richard Butler
By Richard Butler (11 months ago)

The point is more that Kodak was likely to end up owing the UK pension scheme $2.8bn - presumably it had either funded its US scheme better or there was less legal compulsion for it to properly fund it.

1 upvote
Matt1645f4
By Matt1645f4 (11 months ago)

where eer you go in this world, the rich get richer the poor get poorer......

2 upvotes
JackM
By JackM (11 months ago)

No actually the poor are not getting poorer. It's just that they suffer from crippling jealousy. Meh.

2 upvotes
adrianf2
By adrianf2 (11 months ago)

JackM I have read some stupid comments before, but yours is up there with the best of them.

Meh indeed.

Comment edited 41 seconds after posting
3 upvotes
walkaround
By walkaround (11 months ago)

The reality is sinking in: there are no Kodak pensions. Any money that is left will be divided up between the executives, leaving nothing for the retired workers.

5 upvotes
Stacey_K
By Stacey_K (11 months ago)

This company was so badly mismanaged for a long time and another example of the top heavy, huge CEO payouts that ruins so many companies today. The only ones who will suffer are the people with the reduced pensions Kodak execs screwed them out of for their own personal gain. Well them and all the people who will lose their jobs to support the greed of a few people at the top.

10 upvotes
peevee1
By peevee1 (11 months ago)

US corporative management is so bad the only thing they manage is to lose competition to everybody, get golden parachutes and blame it on unions and taxes, although Japan and Germany have more unions and taxes.
The real culprit is this ownership by pension funds, making hundreds of millions people the formal owners of corporations and leaving them without REAL owners and thus managed by incompetent and not personally involved pension-fund-appointed boards and hired by them incompetent MBAs who are neither good in business (never created one) or specific industry.
This breakdown in corporate ownership is the REAL socialism creep which never being talked about on TV.

3 upvotes
Total comments: 14