Hogan Lovells, Linklaters and Sullivan & Cromwell have won lead roles as Eastman Kodak offloads its personal film business to UK pensioners in a bid to erase around $2.8bn (£1.8bn) of claims.
Kodak Pension Plan (KPP), Kodak’s largest creditor, will pay $650m (£419m) in cash and non-cash to take on Kodak’s personal film business. The proceeds, which should see Kodak emerge from Chapter 11 bankruptcy protection in the US, will save members from being rescued by the UK’s industry rescue fund, the Pension Protection Fund.
KPP chairman Steven Ross said in a statement: “This acquisition provides security for and delivers the greatest value to the KPP members. Overall, this settlement gives the KPP members greatly improved future prospects whilst being good for Kodak’s employees, its creditors and for UK businesses.”
Linklaters advised Kodak, led by London pensions partner Mark Blyth and restructuring and insolvency partner Rebecca Jarvis. Sullivan advised the company in the US, with New York-based restructuring and bankruptcy head Andrew Dietderich taking the lead.
Meanwhile, Hogan Lovells is understood to have advised KPP, fielding a team lead out of London by pensions partner Katie Banks.
Background to this deal:
Kodak is a new client for Linklaters and is not understood to have been required to pitch for the work. Meanwhile, the trustees of KPP are longstanding clients of Hogan Lovells’ Banks, while Dietderich at Sullivan has advised Eastman Kodak since it entered bankruptcy last year.