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Kodak cleared to get $950m bankruptcy financing

updated 07:15 pm EST, Wed February 15, 2012

Apple asks judge for approval to sue over patents

The judge overseeing Kodak's bankruptcy proceedings has approved the company's proposed $950 million financing arrangement between itself and its lenders and bondholders. Kodak filed for Chapter 11 protection in January and sought to use the funds while it sold off some of the 1,100 patents it held to generate cash while it restructured itself and continued to make payroll. The judge, Allan L. Gropper of the US Bankruptcy Court for the Southern District of New York, approved the arrangement despite a series of suits and counter-suits between Kodak, Apple, and others over some of the patents that Kodak now hopes to sell.

As part of its bankruptcy filing, the company sought approval of the $950 million credit from Citibank, one of its creditors, as it tried to reap the benefits of some of its intellectual property, valued in excess of $1 billion. Shortly after Kodak filed, Apple raised an objection to the loan arrangement, claiming that some of the patents that Kodak was trying to sell were at the center of litigation between the two companies.

The judge didn't directly address Apple's claims in granting the money, although an attempt by Apple to claim ownership of Kodak patents based on earlier work had been tossed out. Apple has subsequently asked for permission to sue Kodak to counter a suit that Kodak had filed against Apple immediately before Kodak filed for Chapter 11.



By Electronista Staff
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Comments

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    0

    Maybe Apple can consider...

    buying Kodak. They have the money and position. Apple could benefit if it is in their plans. Kodak was a great American company, it still can be.

  1. garmonbosia

    Fresh-Faced Recruit

    Joined: Aug 2002

    +5

    Not quite sure why they would

    It's Apple's position that Kodak's patent claims actually belong to Apple anyway. I would assume that the rest of their portfolio is worthless to Apple since Kodak sat on their A$$ while every other camera company went digital and compiled the valuable patents. That leaves the company itself, which is worse than worthless. It's liabilities far outweigh their assets. I can see Apple buying some or all of their patents for defensive reasons but Kodak itself is a money pit.

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