Eastman Kodak Co., Rochester, N.Y., filed for Chapter 11 bankruptcy protection Thursday listing overall assets of $5.1 billion and debts of $6.75 billion, according to the company's petition to U.S. Bankruptcy Court in New York.
Eastman Kodak had $4.86 billion in U.S. defined benefit plan assets at the end of 2010, according to data in the company's latest 10-K filed with the SEC.
According to the Kodak 10-K, the plans' funding ratio was 95.9% at the end of 2010. According to a statement Thursday from the PBGC, the funded ratio for Kodak's two pension plans is 86%, with $4.9 billion in assets covering about $5.6 billion in benefits.
Kodak also had $6.64 billion in U.S. defined contribution assets by year-end 2010, according to the latest available data in the company's 11-K filed with the SEC.
The company said its foreign subsidiaries are not subject to the Chapter 11 proceedings. The company reported $2.63 billion in foreign DB assets as of year-end 2010, according to the latest available data in Kodak's 10-K.
A Kodak news release said the reorganization of its U.S. operations would be completed in 2013.
“The company believes that it has sufficient liquidity to operate its business during Chapter 11, and to continue the flow of goods and services to its customers in the ordinary course,” according to the release.
In a letter to retirees posted on the company's website, Kodak said there would be no impact on the amount of Kodak Income Retirement Plan benefits or the payment of monthly annuities, “given that the plan is well funded and neither Kodak nor its creditors have access to (plan) assets.”
It also said the Pension Benefit Guaranty Corp. would take control of the U.S. DB plan “only if Kodak goes out of business or cannot make required contributions to the plan, neither of which is currently anticipated.”
The letter also said that “while Kodak may make changes to its 401(k) plans during the Chapter 11 reorganization proceedings, these changes will only affect future company contributions to the plan, not past contributions.”
“Kodak's U.S. pension plans are reasonably well funded and we want to make sure they stay that way,” according to a statement from the Pension Benefit Guaranty Corp. “We will actively participate in Kodak's bankruptcy to protect Kodak's pension plans for their workers and retirees.”