Bankrupt Kodak to slash retirement benefits in bid to rise from bankruptcy
October 12, 2012, 12:01 am TWN
NEW YORK -- Eastman Kodak will be scaling back benefits paid to retirees as part of a restructuring program aimed at pulling the century-old photography pioneer out of bankruptcy.
Medical, dental, life insurance and survivor income benefits, which were costing the company US$10 million per month, will be terminated at the end of the year as part of a proposal agreed upon with an official committee of retirees.
To cover the US$1.2 billion liability, Kodak will provide the committee with a US$7.5 million cash payment, a US$635 million unsecured claim and a US$15 million administrative claim, the company said in a statement Wednesday.