Key Takeaways
- • Eastman Kodak (KODK.N) has hired investment consulting firm NEPC to maximize the value of its overfunded pension plan and use any resulting surplus to pay down debt, according to a company statement released Friday, March 1, 2024.
- • The move follows Kodak's late-2023 disclosure that the plan was overfunded by $1.2 billion.
- • The Kodak Retirement Income Plan Committee (KRIPCO) and the company are weighing how to preserve and maximize the over-funding for current and former employees and shareholders.
- • NEPC has served as external financial adviser to KRIPCO since 2004, so the engagement extends an existing advisory relationship.
- • Shares fell about 4% in morning trading after Bloomberg reported the news on Thursday, which had triggered a 53% surge in the prior session.
Summary
Eastman Kodak Co has tapped investment consulting firm NEPC to maximize the value of its overfunded pension plan and to apply any surplus toward reducing debt, the company said on Friday, March 1, 2024, according to Reuters. The move follows Kodak's report late last year that the plan was overfunded by $1.2 billion.
In a statement, Kodak said it, together with the Kodak Retirement Income Plan Committee (KRIPCO), has been exploring how best to preserve and maximize the value of the over-funding for the benefit of key stakeholders, including current and former employees and shareholders. NEPC has served as an external financial adviser to KRIPCO since 2004.
Market reaction was mixed. Shares of the company fell 4% in morning trading after Bloomberg first reported the news on Thursday, which had sparked a 53% surge in the company's shares in the previous session.
Kodak, whose products once dominated the photography and film industry, is one of the biggest casualties of the digital revolution and now focuses on manufacturing advanced materials and chemicals.
In a statement, Kodak said it, together with the Kodak Retirement Income Plan Committee (KRIPCO), has been exploring how best to preserve and maximize the value of the over-funding for the benefit of key stakeholders, including current and former employees and shareholders. NEPC has served as an external financial adviser to KRIPCO since 2004.
Market reaction was mixed. Shares of the company fell 4% in morning trading after Bloomberg first reported the news on Thursday, which had sparked a 53% surge in the company's shares in the previous session.
Kodak, whose products once dominated the photography and film industry, is one of the biggest casualties of the digital revolution and now focuses on manufacturing advanced materials and chemicals.
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