Eastman Kodak Files for Chapter 11 Bankruptcy Protection
January 19, 2012 9:40 AM
comment(s) - last by
Kodak expects to complete its restructuring in 2013, and the filing will not affect non-U.S. subsidiaries
predicted earlier this month
, Eastman Kodak announced early Thursday morning that it had filed for Chapter 11 bankruptcy protection.
The 131-year-old film giant filed in the federal bankruptcy court in the Southern District of New York. The filing, which only includes Kodak's U.S. subsidiaries, listed assets of $5.1 billion and debts of $6.75 billion.
Kodak had said back in November 2011 that it would be unable to pay its bills at some point in 2012 unless it stumbled into some quick cash. The company needed at least $500 million to stay afloat through the year, and it tried to
sell its portfolio of 1,100 digital imaging patents
in order to raise some cash, but was unsuccessful in doing so.
"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez, chairman and chief executive officer of Kodak. "At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.
"After considering the advantages of chapter 11 at this time,
the Board of Directors
and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak. Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers."
Kodak said it expects to continue operating normally while in Chapter 11, including offering goods and services to customers while continuing to provide employees with usual wages and benefits.
Kodak, which received a $950 million debtor-in-possession from Citigroup in order to provide the company liquidity to operate normally during bankruptcy, aims to focus on four main goals while undergoing Chapter 11: receive financing needed to stay in business, the ability to pursue patent infringement claims, focus on the printing business (because that's where the area of growth is, according to Perez), and change its legacy costs to a "fairer level."
"Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses," said Perez.
Kodak expects to complete its restructuring in 2013. The bankruptcy filing will not affect non-U.S. subsidiaries. Kodak is also expected to announce its Q4 2011 and full-year financial results on January 26.
The Wall Street Journal
This article is over a month old, voting and posting comments is disabled
1/20/2012 5:01:41 AM
Great! I just bought one of the new Kodak printers. I had one of their first models and the print head broke a few times on it, but the low cost of ink made up for it! I hope they stay in business until my warranty ends at least. Oh and on a side note, they still make the best photo paper available! Also the new Hero printers are really nice and sleek looking and do a great job.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
Report: Kodak Prepares to File Chapter 11
January 5, 2012, 10:33 AM
Kodak Loses Another Board Member, Takes on Water as Ship Sinks
January 2, 2012, 10:25 AM
Kodak's Patents Maybe be Worth Five Times the Company's Market Cap.
August 17, 2011, 3:54 PM
Quick Note: Pebble, Pebble Steel Smartwatches Reduced to $99, $199 Respectively
September 30, 2014, 3:59 PM
Report: Microsoft Lumia 830 Headed to AT&T on November 7
September 30, 2014, 12:51 PM
Update: Samsung Responds to Reports of Screen Gaps on Galaxy Note 4
September 30, 2014, 11:02 AM
Apple to Begin iPhone 6, iPhone 6 Plus Sales in China October 17
September 30, 2014, 9:55 AM
eBay to Spin Off PayPal Business Next Year
September 30, 2014, 7:28 AM
HP Adds $99 Windows Tablet, $199 Windows Notebook to Stream Family
September 29, 2014, 7:17 PM
Most Popular Articles
Appalling Negligence: Decade-Old Windows XPe Holes Led to Home Depot Hack
September 8, 2014, 8:58 PM
iBend: Reports Grow of Razor-Thin iPhone 6+ Folding Like Origami in Your Pocket
September 23, 2014, 6:08 PM
New AT&T Mobile Share Value "Double Data" Promotion Lasts Through October
September 28, 2014, 8:32 AM
Update: Apple Releases iOS 8.0.2 Update to Make Up for Botched 8.0.1 Release
September 25, 2014, 8:19 PM
TiVo Mega Features 24TB of Storage, Can Record Three Years* Worth of TV Content
September 8, 2014, 8:45 AM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information