...February 3, 2025 Kodak's announcement that it is evaluating the termination and monetization of its pension plan could lead to some deleveraging, though this would not significantly affect its credit profile. In late November of 2024, Kodak filed an 8-K disclosing that it is considering strategic options, including a possible termination, for its employee retirement plan. As the plan is currently overfunded, based on the company's current assumptions, it expects to receive estimated net proceeds of about $530- $585 million after satisfying all of its pension plan- related liabilities and tax obligations. Management also stated that--in the event of a termination--it intends to use approximately $315 million of the net proceeds to pay down its existing term loan balance to $200 million, which would reduce its interest expense by about $40 million. Kodak expects to satisfy the exiting pension plan-related liabilities using the combination of a lump sum distribution and the purchase of an...
