It’s final! As of yesterday Apple, Google, and Microsoft (News - Alert) have been awarded the 1,100 digital imaging patents of Kodak by bankruptcy court Judge Allan L. Grooper.
Last year, Kodak made the announcement that it would be filing for Chapter 11 bankruptcy, and according to CEO Antonio Perez, “The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak (News - Alert).”
Kodak was hoping it would be able to come away with $2 billion in its patent deal, however, the amount that was settled upon came in way under at $527 million. Even Judge Grooper was disapproving of the settlement calling it “disappointing.”
A lawyer for Kodak stated in the New York Journal that, “The amount in transactions, which are complicated and integrated, are the highest and best value available to the debtors." The funds that have been made from the patent sale will definitely aid in Kodak’s efforts to emerge from bankruptcy.
Other winning bidders of the companies’ patents are Adobe, Facebook, Huawei Technologies, Fujifilm, RIM, Samsung (News - Alert), and Shutterfly as well as units of HTC and Amazon.
Kodak will use some of the money from the patent sales to pay back funds to firms that helped it financially during its bankruptcy. Michael H Torkin, who works as an attorney with one of Kodak’s bankruptcy law firms, stated in court that Kodak owes an estimated $625 million to Debtor in Possession lenders.
Also finalized is the sale of Kodak’s Eastman Business Park in Rochester, NY for $8.5 million, which has been sold to Illinois-based Recycled Energy Development, which plans to upgrade and operate the utility infrastructure.
Since Kodak has filed for Chapter 11, it announced that it will discontinue the making of its ink jet printers, sold its special effects business in the United Kingdom, and shut down its digital camera business.
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Edited by Brooke Neuman