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Kodak to receive $525M from patent sale

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Wednesday, December 19, 2012 - 10:57 am

ROCHESTER, N.Y. – Eastman Kodak will receive about $525 million from the sale of its digital imaging patents, money the struggling photo pioneer says will help it emerge from bankruptcy protection in the first half of next year.

The Rochester, N.Y., company filed for bankruptcy protection in January after struggling to adapt to the shift to digital photography.

Eastman Kodak Co. said Wednesday the patent sale will help it repay a substantial amount of its initial debtor-in-possession loan, and it satisfies a key condition of new financing that required the sale of the patents for at least $500 million.

In November, Kodak said it would receive loans worth $830 million in a new, cheaper financing package, replacing a $793 million deal.

Kodak has been pummeled in recent years as consumers switched to digital photography from film. It put its patents up for sale in July 2011, and analysts initially thought the portfolio could fetch between $2 billion and $3 billion because patents have become highly valuable to digital device makers who want to protect themselves from intellectual property lawsuits. But Kodak struggled to find a buyer.