Kodak wants its name removed from Oscars venue
LOS ANGELES / Eastman Kodak Co. has asked the U.S. bankruptcy court to void an estimated $4-million-a-year contract to have its name on the Hollywood theatre that hosts the Oscars. The bankrupt photography company is trying to reduce its debt.
Kodak said in court documents that it is filing a motion to reject the contract and that the theatre should take all steps necessary to remove Kodak’s naming rights and signage associated with it.
About 10 years ago, Kodak agreed to pay $74 million to developers to see its name on the 3,400-plus-seat theatre. The building is owned by CIM Group.
“Kodak is proud of its important role in the entertainment industry, and our longstanding relationship with filmmakers. Our motion today reflects our commitment to ensure that we are maximizing value for our entertainment customers, creditors and other stakeholders,” the company said.
Kodak’s bankruptcy on Jan. 19 has been reverberating through Hollywood in several ways.
Among Kodak’s top unsecured creditors are major studios, owed millions of dollars in film rebates, which fear they will not be repaid.
Major entertainment companies listed among Kodak’s top 50 unsecured creditors include Sony, owed $16.7 million; Time Warner’s Warner Brothers, due $14.2 million; Comcast NBC Universal, short $9.3 million; Viacom’s Paramount Studios, owed $6.8 million; and Walt Disney Studios, $4.2 million.
Sources have said most of those debts are related to film rebates owed to the studios, which buy film from Kodak on a pictureby-picture basis. The price of film varies and often drops as a studio uses more, which is why they are often owed rebates.
The Academy Awards will be presented on Feb. 26.