Kodak has announced an agreement in principle with the official committee of retirees that will end benefits at the end of this year for those not yet eligible for Medicare in return for a cash payout.
The amount of that payout is contingent upon Kodak’s successful emergence from bankruptcy.
Under the deal, the committee will make payments to retirees to subsidize a portion of their future costs for medical, dental, life insurance and survivor income benefits.
Kodak expects to save roughly $10 million a month as a result.
Kodak CEO Antonio Perez said, "With this proposed resolution to our U.S. retiree benefit legacy liabilities, Kodak takes a major step forward toward our successful emergence. Today's agreement is a decisive accomplishment toward one of our fundamental objectives in our restructuring."
A group representing Kodak retirees (EKRA) responded to the ruling in a statement Wednesday, saying the news came as a shock.
"Although EKRA has not seen the details of the Kodak plan, we are very disappointed that the information about such a dramatic change in health and welfare benefits became known via the public court venue," read the statement.
Retiree representatives said it was especially disappointing that neither Kodak nor the Official Retiree Committee did not reveal the "direness of the Kodak situation nor in any way indicate the Draconian result they were about to reveal."
EKRA said it will continue to push for as much information about the decision as it becomes available.
—Includes reporting by Bethany Young
Kodak has announced an agreement in principle with the official committee of retirees that will end benefits at the end of this year for those not yet eligible for Medicare in return for a cash payout.
The amount of that payout is contingent upon Kodak’s successful emergence from bankruptcy.
Under the deal, the committee will make payments to retirees to subsidize a portion of their future costs for medical, dental, life insurance and survivor income benefits.
Kodak expects to save roughly $10 million a month as a result.
Kodak CEO Antonio Perez said, "With this proposed resolution to our U.S. retiree benefit legacy liabilities, Kodak takes a major step forward toward our successful emergence. Today's agreement is a decisive accomplishment toward one of our fundamental objectives in our restructuring."
A group representing Kodak retirees (EKRA) responded to the ruling in a statement Wednesday, saying the news came as a shock.
"Although EKRA has not seen the details of the Kodak plan, we are very disappointed that the information about such a dramatic change in health and welfare benefits became known via the public court venue," read the statement.
Retiree representatives said it was especially disappointing that neither Kodak nor the Official Retiree Committee did not reveal the "direness of the Kodak situation nor in any way indicate the Draconian result they were about to reveal."
EKRA said it will continue to push for as much information about the decision as it becomes available.
—Includes reporting by Bethany Young
