Hollywood & Highland Owner Files Objection in Kodak BankruptcyFriday, February 10, 2012
CIM/H&H Media LP has filed an objection in U.S. Bankruptcy Court that seeks to block Eastman Kodak Co. from ending its sponsorship agreement at Hollywood and Highland’s Kodak Theatre.
The naming rights deal signed in 2000 was for 20 years at a cost of $72 million, with $3.6 million due this year.
The CIM Group Inc. limited partnership said in its legal filing that the sponsorship agreement should be kept in place until at least the end of the year to give the Hollywood company time to find a new sponsor. It also argued Kodak would continue to benefit from having had its name on the building even if the signage comes down tomorrow, noting that the Academy Awards are only a few weeks away.
Eastman Kodak in a bankruptcy filing last month said that the benefits gained from naming rights deal was not worth the investment as the Rochester, N.Y. company seeks to reorganize. U.S. Bankruptcy Court Judge Allan Gropper in New York is scheduled to consider Kodak's motion on the naming rights issue during a Wednesday hearing.
The 3,400-seat theater has hosted the Academy Awards for nearly 10 years. Eastman Kodak’s fortunes have faltered since both the motion picture industry and consumers began shifting from photographic film to digital technology.