Hogan Lovells has advised the trustees of the Kodak Pension Plan (KPP) on the implementation and completion of a comprehensive settlement of its claims against Eastman Kodak Company (EKC) and Kodak Ltd, its UK subsidiary.
This included the acquisition of EKC’s Personalized Imaging (PI) and Document Imaging (DI) businesses, valued at $650m but acquired through a mixture of release of claims and a cash consideration of $325m. The acquisition closed 3 September 2013, the day of EKC’s emergence from bankruptcy.
EKC, the guarantor of Kodak Ltd’s obligations to KPP, filed for Chapter 11 bankruptcy protection in the US in January 2012. This resulted in the trustees of the KPP filing unsecured claims for $2.837bn against EKC last year.
After extensive negotiations, EKC and KPP agreed to a settlement, approved by the US bankruptcy court earlier this year, including the acquisition by the KPP of the PI and DI businesses in an elaborate carve-out transaction that involved extracting the relevant assets from more than 50 EKC entities worldwide. The ongoing income generated by these businesses will be used to fund member benefits.
The cross-border, cross-practice Hogan Lovells team advising the trustees was led by London pensions partner Katie Banks, supported by associate Jim Davis, with significant contributions from US partner Christopher R Donoho III and associate Daniel Lanigan on business restructuring and insolvency matters; partners John H Booher, Michael J Silver, Tom Brassington and counsel Derek B Meilman on M&A matters; partner Elizabeth M Donley on commercial matters; and partner Karen Hughes on tax matters.
Members of the law firm’s global employment, intellectual property, real estate, environmental, finance and antitrust and competition teams also provided major support on the transactions.