Kodak Selling Online Photo Service
Eastman Kodak Co. of Rochester, N.Y., has entered into an agreement with Shutterfly, an Internet-based social expression and personal publishing service, for the proposed sale of certain assets of its Kodak Gallery online photo services business for $23.8 million. Kodak will transfer its US and Canada Gallery customer accounts and images to Shutterfly. The agreement comprises the initial, stalking horse bid in a court-supervised auction process under Section 363 of the US Bankruptcy Code, which will ensure the maximization of value for the assets. Kodak plans to complete the sale process by this spring. It filed for Chapter 11 in mid-January.