Film-Tech Forum ARCHIVE: Kodak sells film manufacture business to UK pension fund

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Posted by Leo Enticknap (Member # 534) on 06-03-2013, 10:43 AM:

The following with acknowledgement to Jim Lindner's recent posting on the AMIA members' email list, which included this and other Kodak-related links. Wasn't sure whether to put this here or in Ground Level, but given that it isn't related to the theatre business directly, decided that here would be best.

quote: Rochester Star-Gazette (my emphasis)
The company, which employs about 3,500 locally, has repeatedly indicated it hopes to emerge from bankruptcy sometime in the third quarter of this year. It is in the midst of selling such lines of business as its photographic film and paper and document scanner operations to a United Kingdom pension fund to settle its sizable debt to that fund. Kodak’s post-bankruptcy business plan revolves around equipment, supplies and services for the commercial printing industry.

quote: City AM
THE UK pensions watchdog has been urged to reveal why it agreed to Kodak’s £419m deal to keep its British pension plan out of the national rescue fund.

Independent pension consultant John Ralfe said the “extraordinary deal… seems to have abandoned rule-based pension regulation, and moved to ‘regulation by expediency’”.

The Pensions Regulator last week approved Kodak’s arrangement, which will see its pension fund buy two of its businesses and drop a £1.8bn deficit claim against the firm as it tries to exit bankruptcy.

“The Pensions Regulator should be banging the table on behalf of the PPF but it’s not at all clear how hands on it has been in cases like this,” he told City A.M.

Ralfe, who formerly ran the Boots pension scheme, called on the regulator to issue a Section 89 report detailing its decision.

Hmmm ... I hope the new owners don't decide to asset strip, cut and run.

Posted by Mitchell Dvoskin (Member # 751) on 06-03-2013, 12:13 PM:

> I hope the new owners don't decide to asset strip, cut and run.

I suspect that is exactly what they are going to do, as it is unlikely that a pension fund wants to be in the manufacturing business. I would not be surprised if all research/development ceased, the business stripped to the bone, and resold piece meal. If it plays out this way, it will be a sad end indeed.

Posted by Dan Kessler (Member # 6607) on 06-03-2013, 08:00 PM:

I could be wrong, but I think this refers to their
consumer photo products, not motion picture.
I can't cite the recent articles I've seen elsewhere,
but I think that's what they said.

Posted by Dan Kessler (Member # 6607) on 06-04-2013, 07:21 PM:

Another thread just popped up in the film handlers' forum
confirming what I said in my previous post. I checked kodak's
site, also, where they reference at least one other article
stating they are remaining in the business of manufacturing
motion picture film.

Posted by Jock Blakley (Member # 6552) on 06-05-2013, 04:49 AM:

Kodak's business structure has always been a bit convoluted. Basically though various parts of Kodak order film from other parts and then sell it either directly to end users or to distributors.

This sale involves the Personalised Imaging business group, which is responsible for the marketing of consumer and professional still film, printing paper, and the like, as well as "retail solutions" like printing kiosks and all of the kitsch stuff.

On the other hand, the Entertainment Imaging business group, which includes the Cinema and Television division, is remaining with Kodak proper. The same goes for Aerial and Industrial Imaging, who have their own film portfolio (including my precious HAWKEYE Surveillance Film 2485).

Eastman Kodak is also retaining their actual film production operations, which will continue out of Rochester. Paper production at Harrow will however be transferred to KPP, as motion picture production at that plant ended a few years ago.

This was probably best illustrated last year when all versions of Ektachrome was discontinued by Personalised Imaging. However, production of EKTACHROME E100VS continued because Entertainment Imaging were still ordering it to sell as EKTACHROME 100D 5285.

The head of KPP seems to be making veiled statements about their intention to continue marketing most of the current Kodak Professional film range (not there's much left anyway), but I suppose we'll just have to wait and see.

Posted by Leo Enticknap (Member # 534) on 06-05-2013, 05:39 AM:

Many thanks, Jock and Dan.

Good to hear that it's not Entertainment Imaging that has been sold to fund managers. As Mitchell points out, the end would have come pretty soon if it had been.