Brighton Securities Lists Top 5 Things You Need to Know about Kodak Now

ROCHESTER, N.Y., Jan. 20, 2012 /PRNewswire/ -- Brighton Securities, a financial services firm in Rochester, NY established a Kodak hotline, community meetings and is answering questions live on social media as Rochester takes a psychological blow from Kodak filing Chapter 11.

"Kodak is a company in our backyard," said George Conboy, president of Brighton Securities and expert on local, national, economic and business analysis. "Of the thousands of people impacted, there are nearly 25,000 Kodak retirees in the Greater Rochester area alone. People need to know what this means for them and our firm is answering the call. Brighton Securities is holding Community Resource Meetings for Kodak employees and retirees, helping to provide clear information at a time when rumor, half-truth, and urban legend have circulated throughout the community. Can't join us? Tweet me your questions @gtconboy using #ROCKodak."  

Brighton Securities lists the top five things you need to know about Kodak now:

1. SIP is seeing a major change.  Effective February 1, 2012, the Fixed Income Fund (formerly Fund D) will change to a pure fixed-income fund. The difference with the new fund is that it will no longer carry the insurance "wrapper" designed to keep the value stable. With this material change, it may be time for participants to review all of their options for their SIP balance.
2. KRIP (Kodak Retirement Income Plan) will now be subject to a PBGC (Pension Benefit Guarantee Corporation) audit as a routine consequence of the bankruptcy filing. This will likely take 2-3 months, and employees who terminate during that time will not have access to a lump-sum settlement option, though monthly pension payments would still be available and are secure. After the audit is complete the plan may be able to resume lump-sum settlements if the PBGC determines that the plan is adequately funded.
3. Uncertainty about some aspects of retiree health insurance has cleared a bit. Some retirees pay their health insurance share to Kodak in advance. We had advised that retirees pay month-to-month to avoid ending up as an unsecured creditor. That concern has passed, and there should be no problem paying a few months ahead for those people who want the convenience of not writing a small check every month.
4. Employees will keep their jobs and benefits – for now. Kodak will try to sell businesses (consumer is high on the list) but even if sold a lot of jobs will remain.
5. Bankruptcy means reorganization for Kodak – not liquidation. The company will try to sell its patents and some business units with a plan to slim down and emerge a smaller and more profitable company. Estimated time in bankruptcy: about 18 months.

As Kodak prepares to release its fourth quarter earnings on Jan. 26, Conboy will be available to answer questions and provide commentary and analysis.

A sample of some of Conboy's Kodak predictions and analysis may be found at www.brightonsecurities.wordpress.com and on his twitter feed at @gtconboy. Kodak employees and retirees with questions may call Brighton Securities Kodak hotline: (585) 340-2246.

About Brighton Securities

Brighton Securities is an independently owned full-service financial firm headquartered in Rochester, N.Y. with a satellite office in Batavia, N.Y. Established in 1969, Brighton Securities services and investment offerings include: financial planning, fixed income investments, insurance, lending services, corporate retirement plans for businesses, annuities, bonds, CDs, common and preferred stock, Roth and traditional IRAs, government securities (both federal and municipal), money market and mutual funds, options and unit trusts, personal and corporate tax services, and accounting services. Financial advisors serve the individual investor, trusts and estates, and small to medium-sized businesses. Brighton Securities is a member of FINRA & SIPC. www.brightonsecurities.com.

SOURCE Brighton Securities

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