Deals
Kodak Said to Face Pressure From Bondholders on Patent Sale
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Avenue Capital Group and Blackstone Group LP’s GSO Capital Partners LP unit are among investors that own debt in Eastman Kodak Co. and are seeking to profit from a potential sale of its digital-imaging patents, said people with knowledge of the matter.
The creditors hold second-lien debt backed by Kodak’s patent portfolio and want the company to use cash from an asset sale to pay bondholders before pouring proceeds back into money-losing operations, said the people, who asked not to be named because the talks are private. Fidelity Investments and P. Schoenfeld Asset Management LP also hold Kodak second-lien debt, the people said. The stock fell 12 percent today.