Originally posted by jatrax However, I wonder when the sharks will circle on that particular treasure. Surprised no offers have been made yet, but I suppose with Kodak in a downward spiral everyone is waiting until they hit bottom to strike.
No doubt EK's bonds have been accumulated by Distressed Debt hedge funds, who will control the Creditors' Committee in the reorganization.
The job of the Creditors' Committee is to screw anybody who holds equity or unsecured credit (banks, short-term lenders, Commercial Paper holders); grossly undervalue the assets of the company by evaluating them as distressed; negotiate the restructuriing, under these terms, with the Delaware Chancery Court; take possession of the assets of the company and transfer them to a
Liquidating Holding Company, Ltd.; transfer any pension liabilities to the US taxpayer through the Pension Benefit Guaranty Corp. (another GSE); liquidate the assets over time at a 50% annualized IRR; pay out the proceeds of liquidation as a special dividend from Liquidating Holdings, Ltd. (at the special dividend tax rate); and keep any valuable real estate.
It is all very formulaic. Happens all day every day.
(Actually they'l stay in business making commercial and consumer photo printers, a profitable business that they dominate in the commercial space and have competitive consumer product. Film will be milked as a cash cow until it dies - either by
newKodak or by a private equity fiorm that buys it)
Last edited by monochrome; 01-06-2012 at 11:05 AM.