Kodak Alaris takes out $50 million loan from UK pension fund

Kodak Alaris, the marketer of Kodak film, kiosks, and Kodak Moments apps, has secured a three-year $50 million credit facility from the U.K. Pension Protection Fund (PPF), according to Australia’s Inside Imaging. The move was made just weeks before PPF becomes a part-owner of the business through the acquisition of the failing Kodak Pension Plan (KPP2).

The $50 million is spread among Kodak Alaris international subsidiaries, including those in the United States, Canada, Germany, Singapore, Hong Kong and Australia, rather than the parent company, according to Registration of Charge documents filed with U.K. Companies House, according to Inside Imaging.

Kodak Alaris’ U.S. spokesperson did not provide a comment at press time.

Kodak Alaris was formed following the 2012 bankruptcy of Eastman Kodak Co., with a purchase of Kodak’s document, photo film, paper and chemistry, retail kiosks and mobile photo apps businesses by the U.K. Kodak pension plan for $325 million. At the time, EK owed the pension fund $2.8 billion; the formation of Kodak Alaris was seen as a way to generate cash to maintain the fund for the benefit of the pensioners. Inside Imaging, however, reports this has not happened: “According to John Kiely, Smithfield Group, managing director,: ‘Kodak Alaris has not paid any dividends to KPP2 as per its accounts which are publicly available.’”

In recent months, Kodak Alaris sold its photographic paper and chemicals segment to Sino Promise Holdings for about $8 million.