Kodak Files Chapter 11, Looks To Bankruptcy For Protection
Subject: General Tech | January 20, 2012 - 01:24 AM | Tim Verry
Tagged: kodak, chapter 11, bankrupt, restructure, patents, cameras, photography
Eastman Kodak company has been on the rocky edges financially for some time and late last year there were rumors that Kodak would be filing for bankruptcy. Well, it looks like the company's financial position is now official, as they have filed for Chapter 11 bankruptcy and are working to restructure their US operations and become profitable. The company has paired with Lazard, FTI Consulting Inc and Sullivan & Cromwell to assist them in shaving down their business into a lean, mean, picture capturing machine. Under their Chapter 11 filing, Kodak will work to bolster liquidity by trimming down the business to its core and monetizing their "non-strategic intellectual property." The IP likely will involve Kodak selling off some of their non-core patents for imaging. After all, they have a catalog of 1,100 patents, so they definitely have plenty of room to work with in monetizing their assets.
According to Tom's Hardware, since 2003 the company has shut down 13 manufacturing plants, 130 processing facilities, and shed 47,000 workers. Further, to help with the restructuring process, they have obtained $950 million debtor-in-possession loan through Citigroup that will mature in 18 months. This should give the company enough cash to tide them over while they restructure and prepare to sell off certain assets. Kodak states that "Kodak aims to build company that will be successful in the marketplace – and a positive force in the communities we call home." It is important to note that the non-U.S. based operations of Kodak are not affected by the Chapter 11 bankruptcy filing.
Kodak has set up a web page to detail their restructuring efforts.