Joe Robach Rochester NY – Joe Robach’s Kodak Forum answered many questions for retirees about Kodak’s bankruptcy. Some of the questions and answers at the forum can be found below. Please keep in mind that these answers were provided by Brighton Securities with the information that was made available to them at the time (in January).
One of the main topics at Joe Robach’s Kodak forum was “how do bankruptcy proceedings work?.” The answer (described at Joe Robach’s Kodak forum) was as follows: Chapter 11 proceedings permit a reorganization of a company’s assets and debts rather than a total liquidation of the company. Chapter 11 bankruptcy does not necessarily mean the company is going out of business. Under the monitoring by the bankruptcy court, the debtor in possession (trustee) may see loans, cancel contracts, and take other actions deemed necessary to salvage the business. Contracts that may be cancelled include labor union contracts, leases, and vendor contracts. The company’s stock will usually be delisted from the exchange on which it traded and may then trade over the counter.
Another question which kept popping up at Joe Robach’s Kodak forum, was how KRIP would be affected. The answer: KRIP is a traditional benefit plan, so there should no meaningful effect on retirees receiving regular monthly distributions. Existing retirees who are receiving monthly KRIP payments should not see a change. Future retirees may lose the option of taking lump-sum distribution, with a monthly pension payment their only choice.
At Joe Robach’s Kodak forum, there were also several questions about SIP. The information provided was that the bankruptcy should have no effect on SIP. The assets are the account holders (you), and held in an account at T. Rowe Price, and Kodak cannot use that money for corporate purposes, nor can it be claimed by Kodak’s creditors.
Joe Robach’s Kodak forum, featuring Brighton Securities, provided lots of useful information to the public about Kodak’s bankruptcy. For more information, you can contact: Joe Robach office.