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Report: Kodak debtholders hire Blackstone

by Lou Whiteman  |  Published November 15, 2011 at 11:30 AM
Report-Kodak-debtholders-hire-Blackstone227.jpgHolders of Eastman Kodak Co. debt have reportedly retained Blackstone Group LP as a financial adviser to help influence how the troubled company handles its restructuring. The investors have also hired Akin Gump Strauss Hauer & Feld LLP, according to a report in Standard & Poor's Leveraged Commentary & Data. The debtholders were not named, but past reports have suggested Avenue Capital Group, Solus Alternative Asset Management LP, D.E. Shaw & Co. LP and P. Schoenfeld Asset Management LP and major holders of Kodak bonds.

Rochester, N.Y.-based Kodak has been scrambling to adjust as consumers have moved away from traditional photography and toward digital imaging. Kodak in July hired Lazard to help explore options, including potential asset and patent sales, and in late September reportedly hired Jones Day and FTI Consulting Inc. to help advise it in a potential restructuring.

The hiring of advisers would come just weeks after reports surfaced that Kodak has met with hedge funds seeking to negotiate up to $900 million in rescue financing needed to stave off a bankruptcy. Reuters said Kodak officials have been spotted meeting with Cerberus Capital Management LP and Silver Point Capital LP, among others, hopeful of securing bridge financing to tide the it over while it considers asset sales.

Kodak last week announced it had sold its image sensor business, including related facilities, to private equity firm Platinum Equity LLC for an undisclosed amount.

The company has drawn down its revolving credit facility and has warned investors that it might need to issue new debt in the months to come to sustain operations. The debt investors are reportedly concerned that any new debt issued would be granted priority over their holdings, and intend to urge Kodak to instead sell assets.

Kodak shares opened Tuesday, Nov. 15, unchanged at $1.10 apiece.
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Tags: Avenue Capital Group | Blackstone Group LP | Cerberus Capital Management LP | D.E. Shaw & Co. LP | Eastman Kodak Co. | FTI Consulting Inc. | Gump Strauss Hauer & Feld LLP | Jones Day | Lazard | P. Schoenfeld Asset Management LP | Platinum Equity LLC | Silver Point Capital LP | Solus Alternative Asset Management LP | Standard & Poor's Leveraged Commentary & Data

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