Kodak CEO Will Stay On for One Year After Chapter 11 Exit

   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)

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