You have to understand that along with the sale of DI and PI, EK is also dismantling foreign subsidiaries that are not part of the bankruptcy. EK has been auditing and valuing those assets for the last 6 months. Right down to the value of the silver bearing sludge in the UK.
Any hard assets or sale components INCLUDING THOSE OF THE DI and PI that reside in the Rest of the World are not part of BK. Therefore any value of assets sold (including DI&PI) from the rest of the world must be split out as value held as a component of the “EK not in bankruptcy” side. This also includes the Harrow sale.
They can bail out Kodak USA with those assets, they can pay the creditors with those assets, but they cannot dismiss the value of those assets from those who own a share of Kodak World Wide that is not in bankruptcy. It remains a small component of the common which cannot be canceled out.
It is well documented that EK is examining all the foreign subsidiaries to see where they match the goals of the core B2B commercial printing emergence. Where the subsidiaries do not match the B2B reemergence plan, EK is selling off those foreign assets and repatriating the assets over to the US side.
EK in bankruptcy is repatriating the foreign cash (where possible) plus the sale of assets (where possible) in the rest of the world. While it is well documented that EK has 1 billion in foreign cash, the value of the worldwide non-cash assets is not on the books. The value of the hard ROW assets has not been published.
Because EK will be repatriating foreign assets to the US from dozens of the subsidiaries that are not in bankruptcy, EK cannot cancel out that measured portion of this value from the common stockholder. They cannot legally eliminate that repatriated value from the common. That is why you are seeing language in the documents exploring an equity split. They cannot take that from the shareholders without an equitable reconciliation of that value.
You say “Kodak's NON US operations rely upon the British sub for all key banking functions. That sub currently is showing a $1.5 BILLION UN funded pension liability. Before any substantial cash can repatriated to the US, the UK pension liability must be settled.”
OK Sir, but keep in mind that $1.5 billion estimate is overstated because of the currently lower interest rates. In addition, it does not need to be paid with a lump sum. With the revised interest, that could be financed at an equivalent of about 800 million. We don’t yet know the payment terms but before BK they had until 2022.
I am seeing some of your numbers are on the cautious side but I can understand that.
My friend, You are posting “We are UNLIKELY to propose any distribution to the stock”
The actual disclaimer says “Additionally, it is unlikely that we will propose to make any distribution on account of the stock of the Company in connection with our plan of reorganization.”
You are saying “unlikely to distribute TO the stock”
EK is saying “unlikely to distribute ON ACCOUNT of the stock”
And the term “distribution” has a dual meaning. You are only exploring one.
On February 13, 2013, the board of directors of XX (the “Company”) authorized a stock distribution of 0.0075 shares of common stock per share, or 0.75 percent of each outstanding share of common stock, for stockholders of record as of the close of business on March 29, 2013. The Company expects to issue the shares of common stock on April 15, 2013.