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No more Kodak moments, company files for bankruptcy
Calcutta News.Net
Thursday 19th January, 2012
ROCHESTER, New York Eastman Kodak, a 132-year-old American corporate icon, filed for bankruptcy protection after failing to keep up with competitors who were quicker to adapt to the digital era.
Announcing the move to seek bankruptcy protection under Chapter 11, Antonio Perez, Kodak's chairman and chief executive, said: "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."
The bankruptcy protection move by Kodak will affect its operations and companies in the US, but the company said its non-US subsidiaries were not included in the move and would continue to operate as usual.
The company said it has arranged a $950 million (615 million pound) credit facility from Citigroup.
In bankruptcy court papers filed in the Southern District of New York, the company listed debts of $6.75 billion and more than 40 entities that have claims against it.
The move comes days after Kodak sued a number of companies, including Apple, claiming infringement of patent rights.
Earlier this month, the New York Stock Exchange told Kodak that it could be delisted from the exchange if it could not get its stock price back above $1.00 per share.
Kodak fell out of the Dow Jones Industrial Average of 30 top US companies in 2004.
Since 2003, Kodak has closed down 12 manufacturing plants. Kodak's revenue declined from about $13.3 billion in 2003 to $6 billion in 2011.
The bankruptcy filing listed assets of $5.1 billion and debts of $6.75 billion.
In 2003, Kodak said its workforce numbered 63,900, while in 2011, Kodak had about 17,000 employees, according to a bankruptcy court filing.
Kodak said it expects to continue operating its businesses while in Chapter 11, "and to continue the flow of goods and services to its customers."
Under Chapter 11, a company continues to operate while seeking to reorganize its finances. Many companies emerge successfully from Chapter 11.
Kodak was set up in 1888 and launched the first consumer camera in 1888 with the slogan: "You press the button, we do the rest"
In 1900, Kodak introduced a consumer camera for $1 called the Brownie, which became a top seller in America.
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