POTENTIAL PLAN for emergence Scenario #3 MORE DETAILS
USE of CASH:
1) $1 billion to pay off exit financing.
2) $ 400 million for other claims.
The remaining $600 million cash will be required in the capitalization for Kodak to show substantial liquidity and staying power to customers.
That leaves businesses worth $1.5 billion plus the cash, equaling $2.1 billion to satisfy the UK pension, OPEB claim, and unsecured bonds.
For Kodak to retain NOLs at least 50% of NEWCO equity must be from OLD shareholders and creditors who held at least 18 months before BK.
Of the creditors ONLY the UK pension qualifies, because there has been substantial turnover in the other claimants.
THEREFORE, IF Kodak wants to retain NOLs, then UK pension and current shareholder must own at least 50% of the NEWLY capitalized equity.
If Kodak emerges with $600 million in cash, and businesses estimated to be worth $1.5 billion for a total value of $2.1 billion.
Kodak could float low cost secured debt of $650 million since they would have appx. $600 million of cash as collateral.
The proceeds would be used to pay off the OPEB claim, since the present owners will be difficult to negotiate with since many are large hedge funds.
Kodak may be forced to REINSTATE the $400 of CVTs and issue $250 million of NEW unsecured bonds to the 2013 holders.
In this scenario, the UK pension would end up owning appx. 88% of Kodak, with the remaining 12% owned by the current shareholders.
Other scenarios include the OPEB and Unsecured bonds owning 49% of Kodak, UK pension owning 49% with current shareholders only owning 2%, in order to retain NOLs.
A more leveraged Kodak with $650 million of secured bonds, and $650 million of u