Rochester, N.Y. - Kodak could be cleared to move out of Bankruptcy soon. Kodak will be back in Federal Bankruptcy court on Tuesday to determine if its emergence plan -- approved last week by creditors -- will be approved by the court.
George Conboy, the Chairman of Brighton Securities, expects shareholders will get nothing.
If shareholders of the "old" Kodak stock receive no compensation in the agreement, a little bit more money will go to the creditors.
One legitimate hang up to the plan stems from an objection by the federal trustee that is overseeing Kodak's bankruptcy proceedings. The trustee is opposed to the $1.9 million payout to Kodak executives including CEO Antonio Perez. However, the bankruptcy judge has the right to change or remove parts of Kodak's proposed plan.
Conboy says that if the plan is approved, Kodak still has some major hurdles to overcome. "Next [for Kodak] will be to get the creditors paid, to issue the new equity to the residual owners and have them move forward in their business. They need to carve off the digital imaging and personalized imaging businesses to go forward as a new Kodak in servicing the printing industries."
What is clear at this point is that the “new” Kodak that emerges will be a completely different company than the one that filed for Chapter 11 in Jan, 2012