Kodak Bankruptcy Shouldn't Affect Pensions

January 20, 2012 (PLANSPONSOR.com) – Eastman Kodak Company and its U.S. subsidiaries filed voluntary petitions for Chapter 11 business reorganization. 

Kodak reported it expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to the proceedings, according to a Kodak statement.

“Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees,” Antonio M. Perez, Chairman and CEO, said in the statement. 

The Pension Benefit Guaranty Corporation (PBGC) issued a statement saying, “Kodak’s U.S. pension plans are reasonably well funded and we want to make sure they stay that way. We will actively participate in Kodak’s bankruptcy to protect Kodak’s pension plans for their workers and retirees.”

Kodak sponsors two traditional pension plans that cover nearly 63,000 people. The plans are 86% funded, with about $4.9 billion in assets to cover about $5.6 billion in benefits, according to the PBGC.