Kodak’s Bankruptcy Exit Plan Approved By Judge

Last week, a majority of the company’s creditors voted to approve its plan to emerge. But some retirees, shareholders and other parties objected to it.

Although some shareholders argued that they should be entitled for something in exchange for their stock, Gropper said he ruled at a previous hearing that they weren’t. He noted that the company’s creditors will only receive 4 cents or 5 cents on the dollar for their investments and that they’re entitled to be paid before shareholders are. Generally, holders of common stock do not receive anything for their shares when a company emerges from Chapter 11.

The U.S. Trustee also filed an objection challenging the legality of hefty cash and stock bonuses that Kodak executives are expected to receive when the Rochester, N.Y., company exits from bankruptcy protection.

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AP Technology Writer Michael Liedtke in San Francisco contributed to this story

Article Appeared @http://www.huffingtonpost.com/2013/08/20/kodak-bankruptcy-exit_n_3786675.html

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