According to a press release, Kodak has received $2.35 billion in cash, and will receive up to $200 million in additional future payments if Onex achieves certain returns with respect to its investment. Primarily because of tax-loss considerations, Kodak expects to retain the vast majority of the initial $2.35 billion cash proceeds. As previously indicated, the company plans to use a portion of the proceeds to fully repay its approximately $1.15 billion of secured term debt.
Approximately 8,100 employees associated with the Health Group have transferred to Carestream Health. The business is a worldwide player in information technology, molecular imaging systems, medical and dental imaging, including digital x-ray capture, medical printers, and x-ray film.
“We are now studying options for the cash that will remain after we pay off the secured term debt,” said Antonio M. Perez, Kodak’s Chairman and Chief Executive Officer. “Through this rigorous process with our Board of Directors, we are focusing on financially attractive ways to drive profitable growth and enhance shareholder returns.”
In other news, Kodak announced it has entered into an agreement with the Xiamen Land Development Company ("XLDC") to sell buildings, land use rights, and public utility equipment located on its Haicang Site in Xiamen, China for approximately $40 million. Kodak also entered into several building and utility equipment leases with XLDC in order to continue certain operations at the site. Kodak expects that the transaction will close by June 30, 2007. As a result of the transaction, Kodak will record a non-cash charge of approximately $220 million in the second quarter of 2007.