Kodak seeks bankruptcy protection

Veteran photography brand, Eastman Kodak Company, or Kodak as it is better known, have in an official statement confirmed that they have filed for bankruptcy protection with U.S. Bankruptcy Court for the Southern District of New York. Kodak stated that “it and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization”. With the business reorganization, Kodak aims to focus their resources on their “most valuable business lines”. The company hopes to support liquidity in the U.S and elsewhere, resolve all legal niggles and monetize their non-strategic intellectual property. The statement further states that, “The Company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75% of its revenue from digital businesses in 2011.”

Some quick moves

To further these intentions, Kodak has received “fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital.” This credit, according to the official statement cannot go through without the Court’s approval. Kodak has in the statement confirmed that it has enough liquidity to continue not only with their business through the course of chapter 11, but also to carry on the “flow of goods and services to their customers in the ordinary course.” The company also hopes to pay wages and benefits to their employees, while continuing with their customer programs. The report also states that, “Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.”

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