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Kodak agrees £500 million bankruptcy deal

Kodak has announced it has arranged a financing deal that could take the troubled company out of Chapter 11 bankruptcy, which it filed for in January.

The deal, which still requires court approval, will consist of $793 million (£499 million) in loans from Centerbridge Partners, GSO Capital Partners, JPMorgan Chase and UBS.

"The additional liquidity from this financing will enable Kodak to accelerate its momentum," Antonio Perez, chief executive of Kodak, said. "The significance of this agreement for Kodak is that it establishes a clear path for our emergence as a stronger, more focused company."

However, this financial support depends on whether Kodak can manage to sell a patent portfolio for at least $500 million (£315 million).

Kodak has been trying to flog its patents, made up of over 1,100 digital patents, for over a year now, but remains confident that it can do so soon. Bids have so far fallen short of Kodak's expectations, though Apple and Google are currently amongst the potential buyers of the intellectual property.

Kodak must also sell at least parts of its document imaging and personalised imaging business units and reorganise its UK pension obligations in order to convert the loans into post-bankruptcy support.

This also means that the emerging version of Kodak looks likely to be commercial, rather than consumer-focused.

Kodak is hopeful that it will exit bankruptcy by early-to-mid 2013.