Kodak Files Chapter 11
Eastman Kodak filed notice of business reorganization under Chapter 11 in the U.S. Bankruptcy Court today. According to the company, subsidiaries outside of the United States are not included in this filing and the "flow of goods and services to customers to continue globally in ordinary course."
An official press release issued today says Kodak has a "fully-committed, $950 million debtor-in-possession credit facility with an 18 month maturity from Citigroup to enhance liquidity and working capital." This is, of course, all pending approval from the Court.
It will take at least two years for the restructuring to take place and the company maintains that it will continue to pay salaries and maintain its customer programs during the transition.
Kodak insists that non-U.S. customers will not be affected by the filing.
It's been a rocky road the last few years for this great-grandaddy of all film companies. The advent of digital steered the ship in another direction and it has been difficult to keep up with the competition.
Antonio M. Perez, Chairman and Chief Executive Officer of Kodak says, "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."
"We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company," Perez continues.
In a message to its customers, Kodak promises to honor pending purchases and product warranties will remain in effect during the reorganization.
Suppliers were assured that the intention of the company is to pay them in full "and under normal terms for goods and services."
We hope Kodak can weather the rough seas. They've been a part of our lives for a very long time.
For further information see www.kodaktransforms.com and watch for monthly reports that will be filed with the Securities and Exchange Commission.
Image courtesy PapaTodd.com