Updated: Friday, 01 Mar 2013, 2:03 PM EST
Published : Friday, 01 Mar 2013, 2:03 PM EST
ROCHESTER, N.Y. (AP) — Kodak has reached a deal with its lenders to amend some of the terms of its financing deal, giving the photography pioneer more breathing room as it looks to emerge from Chapter 11 bankruptcy protection.
Eastman Kodak Co. said Friday that it must now raise at least $600 million in cash from the sale of its so-called non-commercial imaging assets. These include its document-imaging and personalized-imaging businesses, trademarks and related rights. Under the prior deal, Kodak had to raise $700 million.
The financing package announced in November included $830 million in loans from a committee of 10 institutional investors who all hold senior secured notes in Kodak. Among its other stipulations was that Kodak also sell its digital imaging patent portfolio for at least $500 million. Last month, Kodak said it got $527 million for the portfolio.
The company based in Rochester, N.Y., still expects to exit bankruptcy protection in the middle of this year.
Kodak also said Friday that the company, a steering committee of second lien noteholders and an unsecured creditors committee plan to jointly hire a search firm to help find new board members to help lead Kodak's reorganization once it exits bankruptcy protection.
Kodak said the current board expects to name an additional independent director once the financing closes. That director would have the potential to continue to serve on the board after Kodak exits bankruptcy protection.
The financing is expected to close in mid- to late March, subject to prior approval of the bankruptcy court.
Founded in 1880, Kodak filed for bankruptcy protection at the beginning of 2012. Since then Kodak has sold off several businesses, such as its online photo service, and said it would shut down others, including the manufacture of digital cameras.
The company intends to focus on commercial and packaging printing. It sees home photo printers, high-speed commercial inkjet presses, software and packaging as the core of its business as it emerges from bankruptcy.