Following on its announced sale of $525 million worth of tech patents to Intellectual Ventures and RPX Corp. last month, bankrupt photo star Eastman Kodak (KODK 2.73%) announced Wednesday its next step toward emergence from Chapter 11 bankruptcy protection.
The company was informed today that the U.S. Bankruptcy Court for the Southern District of New York has approved the company's previously announced deal to secure interim and exit financing from its creditors in the amount of up to $844 million.
According to the company, this permission from the court "strengthens Kodak's position to successfully execute its remaining reorganization objectives, finalize its Plan of Reorganization, and emerge from Chapter 11 in mid-2013." In accordance with this agreement, Kodak will receive new money term loans of $455 million, as well as term loans of up to $375 million "issued to holders of senior secured notes participating in the new money term loans in a dollar-for-dollar exchange for amounts outstanding under the company's pre-petition second lien notes."
Release of the funds described is, however, conditioned on Kodak successfully closing the sale of its digital imaging patents for no less than $500 million.
In a statement, Kodak characterized its position today as being in "the final phase" of its restructuring.
