Eastman Kodak Company: Restructuring a Melting Ice Cube Harvard Case Solution & Analysis

In May 2013, senior supervisors at GSO Capital Partners, which is an $80 billion credit-oriented investment firm, owned by The Blackstone Group, are contemplating as to what to do next with their investment in the senior secured debt of Eastman Kodak Company. Having taken various places in Kodak's debt during the preceding four years, GSO is now faced with a major decision.

Under the firm's recently proposed plan of reorganization, secured lenders were to be given 85% of the firm's common stock, but unsecured creditors objected to the plan. Now, six months afterwards, GSO has brought an amended plan to the table, under which it'd commit to backstop a $406 million equity rights offering that would be made immediately to creditors that are not secured. This deal can help win over creditors who against it, they can necessitate an additional substantial capital commitment by GSO, which was already heavily invested in a business that is highly troubled and it is known as a sick man company within the market.

Publication Date: 08/14/2015

This is just an excerpt. This case is about Finance

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