Kodak explores tapping pension fund's $1.2 billion surplus, Bloomberg reports

Eastman Kodak

29/02/2024 22:00

Feb 29 (Reuters) - Eastman Kodak Co  KODK.N  is
contemplating a move to unlock gains created by its overfunded
pension system, Bloomberg News reported on Thursday, citing
people with knowledge of the matter.
    Shares of the company closed about 52.6% higher, after the
report.
    Kodak was once a key player in the photography and film
industry, but was overtaken by the shift to digital. It now
focuses on manufacturing advanced materials and chemicals.
    The company did not immediately reply to a Reuters request
for comment.
    Kodak is weighing a so-called pension reversion, which would
enable it to take control of the surplus rather than leaving
excess capital to current and future retirees, the people said. 
    The maneuver would involve selling its portfolio of illiquid
investments while liquidating other positions, the report added.
    The overfunded status soared to about $1.2 billion at the
end of 2022, or more than four times Kodak's market
capitalization, Bloomberg said.
     Proceeds may be used for purposes such as paying down debt
and investing in growth initiatives, according to the people. 
    The report added no final decision has been made.

 (Reporting by Sriparna Roy in Bengaluru; Editing by Shailesh
Kuber)
 ((Sriparna.Roy@thomsonreuters.com;))