Next week, a judge will set the roadmap for Kodak’s bankruptcy. In the downstate courtroom, the judge will consider many motions and set many deadlines.
In this hearing, Kodak wants its interim financing plan approved and permission to pay utilities, as well as critical vendors and consultants. Rochester Gas and Electric has objected, believing the proposal does not provide enough security.
Kodak has also requested permission to dispose of assets worth less than $5 million without the court’s approval. In addition, Kodak wants the judge to authorize a procedure for selling assets worth $5 million to $15 million. The University of Rochester filed an objection, saying wants to make sure Kodak doesn’t sell a patent it co-owns with Kodak.
Companies have filed numerous motions to protect their rights in the proceedings. For example, Samsung wants to make sure the bankruptcy doesn’t affect its ability to defend itself against Kodak’s patent infringement lawsuit.
Dozens of “reclamation of claim” motions have been filed. These companies all delivered goods to Kodak within 45 days of the company’s bankruptcy filing and haven’t been paid. Some firms are claiming more than $1 million worth of supplies, while Economy Paper of Rochester is claiming $6,901.10.
Bankruptcy attorney Lucien Morin said companies can’t recover items that have been sold or used. Furthermore, reclaiming the goods isn’t a successful outcome if the goods were made especially for Kodak’s use, such as a manufacturing part. Many firms that filed these claims will want cash, but secured creditors tend to get paid first.
The sheer volume of reclamation of claims leads one to ask how Kodak is operating right now. Would you deliver a product with no assurance you’d get paid? How Kodak is still operating is a topic that could come up at the bankruptcy hearing.
Rachel Barnhart
