Kodak files for bankruptcy protection
Kodak raises $950m to finance through bankruptcy, files for Chapter 11
Kodak has announced that it has filed for Chapter 11 bankruptcy protection this morning.
The troubled camera company was widely expected to make the move, after attempting to sell off some of its patents to keep the company afloat.
Kodak reports that it has secured $950 million in financing from Citigroup Inc and has appointed a chief restructuring officer to help steer the company through bankruptcy court.
The 131-year-old company, which once ranked among America's corporate titans, has had financial trouble since the 1980s, when non-US competitors took over its share in the film market, and the company later had to contend with the rise of smartphones and digital cameras.
Antonio M Perez, chairman and CEO said in a company statement: "Kodak is taking a significant step toward enabling our enterprise to complete its transformation. 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.
"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."