News today from Kodak

All,

I wanted to share the news today from Kodak, as it pertains to its Film and Paper & Output Systems business. Today we announced that Kodak has entered into a comprehensive settlement with the Kodak Pension Plan (KPP), the pension plan for its U.K. employees, to spin-off the Personalized Imaging and Document Imaging businesses. Those in this business at Kodak couldn't be more pleased with the new owner, who recognizes the value and is focused on growth and success. In the new company (to be named at closing), they will use the Kodak brand and hope to have your continued support of the brand, products and services today and for many years to come.

http://bit.ly/15U2u82

Best,

Colleen Krenzer
PR for Kodak's Film Paper and Output Systems Group

Welcome news indeed.

Well it could be a lot worse! I certainly hope under KPP the film offerings don't diminish further, and I can still gleefully buy & use 5x4" TXP for a very long time...

Marc!

Trading in a division to a pension fund does not make the future of such a division look any brighter.

And why did the sale of the Document Imaging Division to Brother did not go through, but to that pension fund instead?

What is puzzling too is the alleged value of those assets traded in as $650million.

I hope that this means good things for Kodak employees and not a bunch of termination laters.

It looks like the new company looks more exclusively focus on photography related products. More focus does seem like a good thing for us in this case.

Well, this at least has some potential. The fact that the settlement is less than 25 cents on the dollar book value gives reason for KPP to continue the business rather than liquidate it; I'm sure any UK pensioners would agree. I would like some more info on the UK pension system before making a final conclusion, though.

What is interesting is that now 2/3 of the major film brands are owned by UK companies.

So who will own and run the coating machine in Rochester from now on?

That Kodak Pension fund.

I'm optimistic. They should have a long-term planning horizon rather than being bought by some group trying to turn a quick profit.

A new owner can't hardly change the market nor over-capacity.

AgX said:

A new owner can't hardly change the market nor over-capacity.

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The new owner can change the direction it is going. The new owner can have the goal of making the business successful.

Nothing like vague news to sink our teeth into...maybe I do not fully understand but it seems like Kodak said to the pension plan: "Here, take it then! Good luck."

Well at least we should have Kodak color (oops: colour, it's British now) film for a while.

Here's a thought... Maybe they will even launch an advertising campaign.

theoria said:

So who will own and run the coating machine in Rochester from now on?

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AgX said:

That Kodak Pension fund.

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All previously posted information contradicts that. Based on the answers in earlier threads, the new owner will be distributing products coated and packaged in Rochester by Kodak.

Colleen -- will the agreement include terms which guarantee the new PI & DI owning entity that Kodak will continue to supply existing sensitized product for a minimum number of years? If so, how many years?

AgX said:

A new owner can't hardly change the market nor over-capacity.

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Sure, but they can do something about marketing. We live in the age of fast communications and Internet -- both of those open new possibilities of inspiring people to try something they haven't done before -- like shoot film.

For an example: I have been posting on Finnish photography and videography forums about filming on super-8 and 16mm film. I have posted links to good examples and information how to buy camera, which features are important, where to buy film... And what has come of this? Already there are some people who have never shot anything on film gotten interested in this kind of hobby, bought cameras and film.

If that kind of inspiring is something one hobbyist can do for film, just think what big business can do. One just has to believe in one's product, market it well and also in those markets which are outside of one's own country. Kodak hasn't really been shining in those areas. While motion picture film isn't part of this deal, it's an excellent example of how things have been going wrong for a long time. If you are in US, you can just call one number and they'll sell you film. If you are outside of US, there's really no easy way to order film. Also, at one point Kodak sold motion picture film online (though only in US!) but even then not all film products were there available. Now, some time ago they closed that service -- because it wasn't really their own but by some third party.

Kodak has been operating like the giant it used to be and like it was in the same markets it was then. But the world has changed. Markets have changed. We live in the age of choice. Shooting on film is a choice. It's not by necessity anymore. Because of this they ought to adapt to survive and thrive: value even smaller customers, make it easier to do business with them, be active in those places where the hobbyists are. And remember that there is a big world and big markets outside US.

Anyway, I'm hopeful. If Kodak employees find this development a step forward I think I can share that joy with them

Those two Kodak Division have been traded in against a debth at a pension fund. This makes the fund the new owner. This has clearly been stated by Kodak.
Nevertheless that KPP remains rather enigmatic.

will the new owners get rid of top management and find someone
who doesn't claim their bread'n'butter business is dead,
or find ways to advertise and supply their retailers ?

hope so ...

The coating facility in Englad that makes color paper will now be a property of the KPP (Kodak Pension Plan) of England. This is still a Kodak entity in a sense. No other facility is involved.

PE

I expect in due course we will find out who will be on the executive board of this new company. This equity for debt swap only makes sense if you can predict a return on the investment, so I am pretty sure KPP have some people behind this with a strategy. Time will tell.

Photo Engineer said:

The coating facility in Englad that makes color paper will now be a property of the KPP (Kodak Pension Plan) of England. This is still a Kodak entity in a sense. No other facility is involved.

PE

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Kodak states of the Personal Imaging and the Document Imaging divisions to have been traded, not about any restrictions to their UK assests alone.

theoria said:

So who will own and run the coating machine in Rochester from now on?

Click to expand...

AgX said:

That Kodak Pension fund.

Click to expand...

Sal Santamaura said:

All previously posted information contradicts that. Based on the answers in earlier threads, the new owner will be distributing products coated and packaged in Rochester by Kodak…

Click to expand...

Photo Engineer said:

The coating facility in Englad that makes color paper will now be a property of the KPP (Kodak Pension Plan) of England. This is still a Kodak entity in a sense. No other facility is involved...

Click to expand...

OK, I overlooked the English paper output. However, all Kodak-branded film will be supplied to the new UK Pension Plan-owned distribution entity, whatever name it chooses at closing, by Eastman Kodak Company in Rochester.

Sal Santamaura said:

…Colleen -- will the agreement include terms which guarantee the new PI & DI owning entity that Kodak will continue to supply existing sensitized product for a minimum number of years? If so, how many years?

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In light of Ron's input, please revise my question to read "Will the agreement include terms which guarantee the new PI & DI owning entity that Kodak will continue to supply existing film products for a minimum number of years? If so, how many years?

OK, clue me in... what's the status of the pension for US Kodak employes and retires?

wy2l said:

OK, clue me in... what's the status of the pension for US Kodak employes and retires?

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My guess is that the answer involves Perez doubled over in laughter while swimming in cash from his various boni.

It sounds like the UK pensioners were told, 'take this beast or lose all'.

I have a bad feeling that the US pensioners are on the 'lose all' side of the deal.

Perhaps KPP will being back Ektachrome ? !!