Kodak is inching its way closer to getting out of bankruptcy.
It now has a tentative buyer for its document imaging business.
Brother Industries says it will buy most of the assets for approximately $210 million.
"The price is a little bit light but what we can't be certain Kodak said it would be selling a certain portion of that business, probably majority but can't be sure what they are obtaining as of now," said George Conboy, Brighton Securities President.
Brother is known for its printers, scanners, and sewing line.
It would take over Kodak's line of document scanners, image capture software, and other services.
Brother released a statement saying Kodak's Document Imaging business is a "complement to Brother's existing lineup."
Brother's offer is just a stalking horse bid, meaning other buyers could come forward with better offers A sale requires court approval.
It is expected to go before the court in late April, final court approval is expected in June.
"The sale provides two things to Kodak. One it meets condition so that it can get that loan and it provides Kodak with much needed cash of more than $200 million they can use to pay off their British pension liabilities and that is the third condition they have to meet before they can get that loan and emerge from bankruptcy," said
The Japanese company would also take on a $67 million dollar liability for prepaid customer contracts.
Financial Analyst George Conboy said Kodak still has a future.
"It looks like Kodak will be a much smaller company than we had originally expected when they entered bankruptcy. $2-3 billion dollars in revenue, in total, just servicing the printing industry and hopefully, hopefully profitable," said Conboy.
Up next will be the sale of Kodak's Personalized Imaging business.
Kodak says its still seeking buyers.