odak Spinoffs Clear Path For Exit From Bankruptcy

Kodak said on Monday that it would spin off its document and personal imaging units to its British pension plan for $650 million in cash and noncash considerations, a move that paves the way for Kodak’s exit from bankruptcy protection. Kodak had been seeking to sell off the two imaging operations. Two weeks ago, Eastman Kodak announced a plan to sell its document imaging business to Brother of Japan for $210 million, with the provision that it could revisit the deal if it could sell both units together. Now the bankrupt film pioneer has struck an even more advantageous deal after a protracted sales process. More important, the pension plan will settle its bankruptcy claim of $2.8 billion, paving the way for the company to emerge from Chapter 11 bankruptcy in the United States. On Tuesday, Kodak plans to file a draft plan to emerge from bankruptcy. read more at: http://query.nytimes.com/gst/fullpage.html?res=9F0CE3D71130F933A05757C0A9659D8B63&ref=bankruptcies