FUNDRAISING NEWS | November 26, 2024
Eastman Kodak said its pension trust has agreed to sell over $850M of its illiquid assets, including private equity investments, and is in the process of redeeming most of its $917M hedge fund portfolio as it considers future options for the pension plan, including a possible termination.
According to a November 25 filing with the SEC, the trust said it has sold Kodak Retirement Income Plan (KRIP) private equity investments with a net asset value of $764.4M as of March 31 to the Mastercard Foundation for cash consideration of $550.6M. It has also entered into separate agreements with four other unidentified investors to sell additional illiquid assets valued at $87.3M for $61.7M in cash, excepting $15.3M of cash to be paid on a deferred basis on Dec. 31, 2025.
Following these divestments, KRIP will hold illiquid assets with a NAV of $161.3M as of September 30, as well as hedge fund interests with a combined NAV of $917.2M as of the same date. The KRIP trust has issued redemption notices covering a “substantial majority” of its hedge fund investments.
As to the future of the pension, the board of Eastman Kodak is reviewing options for KRIP, including its potential termination, but noted that it is yet to finalize a decision on the matter. If a termination plan is pursued, it will involve the settlement of KRIP's liabilities and other legal requirements, leaving the pension plan with estimated surplus assets of between $885M and $975M. A wind-down would take between 12 and 18 months, the company said, with receipt of redemption and sales proceeds taking 18 to 24 months to be fully realized.
Source: https://investor.kodak.com/node/20726/html
