Kodak Files Chapter 11
Eastman Kodakannounced early Thursday that it has filed for protection from its creditors under Chapter 11 of the U.S. bankruptcy code. The filing was made in U.S. bankruptcy court for the Southern District of New York.
The company said the filing is intended to “bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines.”
Kodak said it has received a $950 million debtor-in possession credit facility with an 18-month maturity from Citigroup “to enhance liquidity and working capital.”
Kodak said it “believes that it has sufficient liquidity to operate its business during Chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.”
The company said it expects to pay employee wages and benefits and continue customer programs.
Kodak said it believes the Chapter 11 filing give it the best chance to maximize the value of its digital patents and its printing and deposition technologies.
The company said it expects to complete its restructuring in 2013.
Kodak said on a new site about the Chapter 11 filing that it expects its stock to be delisted from the NYSE.
Here is the company’s FAQ for investors on the filing:
Update: In early trading Thursday, Kodak is down 16.47 cents, or 29.7%, to 39 cents.
On The Fifth Anniversary Of Kodak’s Bankruptcy How Can Large Companies Sustain Innovation
Kodak Film Alongside A Vintage Camera
Five years ago today Kodak filed for Chapter 11 bankruptcy protection. This was not only an economic tragedy for one of the great companies of the last century, it was devastating for the city of Rochester, New York, where the company was based. Kodak was once a household brand whose dominance in the photographic film business was unparalleled. The phrase Kodak moment came to epitomize the cultural relevance of the brand. At its height, Kodaks market share of the photographic film market was more than 80% in the U.S. and about 50% globally. It employed over 60,000 citizens of Rochester, the majority of whom became unemployed when the company collapsed.
Kodak was a juggernaut of a company but the tragedy of its collapse runs deeper. It is not that the company could not have saved itself by responding to change. The tragedy is that Kodak invented the change that eventually killed it. A Kodak engineer, Steven J. Sasson, invented the first digital camera in 1975. In an interview with the New York Times, Sasson describes how Kodaks management reacted to negatively his camera because it was filmless photography, instructing him to tell no one about it.
Steven J. Sasson shows his prototype digital camera he built in 1975
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Summary Of The Settlement Agreements
Three agreements were approved by the U.S. Bnkruptcy Court for the Southern District of New York. The first two agreements relate to environmental cleanup at the EBP and the adjacent Genesee River. These settlements, one between the United States and Kodak, and the related funding agreement between the United States and the New York State DEC provide the following:
- Kodak commits to fund a trust with $49 million for cleanup at the EBP site and the Genesee River
- Kodak and DEC each agree to pay half of any costs above $99 million.
As described in the funding agreement between the United States and New York DEC, there is and agreement to create a plan for the investigation of contamination in the Genesee River and the selection and implementation of a cleanup remedy.
The settlement agreement with Kodak provides liability protection in exchange for the company’s completion of the required work. Moreover, EPA agrees to consider prospective purchaser agreements for new tenants of EBP.
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Ressurection Of Kodak: Kodak In The Mobile Industry
Celebrated camera accessory manufacturers of yesteryear, Kodak, is looking to join Chinese smartphone manufacturing giant Oppo for an upcoming flagship smartphone. This new smartphone is rumored to have 50MP dual cameras, where the cameras of the device will be modeled upon the old classic camera designs of the Kodak models.
The all-new flagship model of Oppo is designed to be a tribute to the classic Kodak camera design. The camera of this Oppo model will allegedly use the Sony IMX766 50MP sensor. Furthermore, the phone will also embed a large sensor in its ultrawide camera as well along with a 13MP telephoto lens and a 3MP microscope camera.
No other information on this matter is currently available as of September 13, 2021.
The collaborations between Android OEMs and camera makers are not something new. Yes, numerous other companies have already come together with other camera manufacturing companies like Nokia, which joined hands with German optics company Carl Zeiss earlier in 2007 to bring in the camera phone Nokia N95. This can be concluded as the first of such collaborations that the smartphone industry has seen. Numerous other collaborations happened eventually, which resulted in outstanding results. OnePlus’ partnership with Hasselblad, Huawei pairing up with Leica and the recent news of Samsung’s associating with Olympus are some of the significant collaborations to be mentioned.
The Company Now Provides Software And Tech For Commercial Printing After Trying Out Cellphones Tablets And A Digital Currency Called Kodakcoin
A Kodak store reopened in May in Paris, when France began to ease coronavirus-lockdown restrictions.
EastmanKodak Co. KODK -4.76% for generations was a household name in photography, the maker of Kodak Moments that preserved families most cherished memories.
Todays Kodak moments are mostly digital, and the company has spent much of the last decade attempting to maneuver out of bankruptcy and into new business areas. The companys latest pivot brings it squarely into the fight against the coronavirus outbreak.
Kodak brought everyday photography within reach to generations of customers.
Kodak last week agreed to a preliminary deal for a $765 million government loan to jump-start production of ingredients used to make generic drugs, including the malaria drug hydroxychloroquine, which President Trump has touted in the treatment of Covid-19, the disease caused by the coronavirus.
The loan is the first of its kind under the Defense Production Act, which had previously been invoked to speed the production of Covid-19 related supplies such as ventilators. The loan now faces congressional scrutiny as lawmakers question Kodaks lack of a track record in pharmaceuticals and stock-option grants issued to executives ahead of the announcement of the loan. The companys stock has been on a wild ride over the past week, surging from $2 to as high as $60.
A Closer Look at Kodak
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Kodak Files For Bankruptcy
Kodak officially filed for Chapter 11 bankruptcy late last night, ending recent speculation that the iconic camera and film company with a history going back more than 130-years was doomed.
This article is from the archive of our partner .
Kodak officially filed for Chapter 11 bankruptcy late last night, ending recent speculation that the iconic camera and film company with a history going back more than 130-years was doomed. The company has been given an 18-month emergency loan from Citibank that provides it with a $950 million lifeline to cover operating costs and allow it to continue to pay its 17,000 employees while it tries to reorganize.
Despite developing many of the key technologies that go into today’s digital cameras, Kodak has had trouble adjusting to the new era of photography, holding on to bloated and money-losing divisions much longer than it should have. Its market value has sunk from a high of $31 billion just 15 years ago to just $150 million today, and there were reports in the last several months that it had burned through all its cash. According to the bankruptcy filing, the company has already closed 13 manufacturing plants, 130 processing labs, and reduced it workforce by 47,000 since 2003. Still, it’s only turned out one profitable year since 2004.
This article is from the archive of our partner The Wire.
Eastman Kodak Files For Bankruptcy
Kodak Declares Bankruptcy
The 131-year-old film pioneer filed for bankruptcy protection. Deputy business editor David Gillen and personal technology reporter Sam Grobart discuss whats next for the company.
Eastman Kodak, the 131-year-old film pioneer that has been struggling for years to adapt to an increasingly digital world, filed for bankruptcy protection early on Thursday.
The American legend had tried a number of turnaround strategies and cost-cutting efforts in recent years, but the company which since 2004 has reported only one full year of profit ran short of cash.
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Since 2008, despite Kodaks best efforts, restructuring costs and recessionary forces have continued to negatively impact the companys liquidity position, Kodaks chief financial officer, Antoinette P. McCorvey, said in a court filing on Thursday.
Citigroup is providing Kodak with $950 million in financing to allow the company to keep going. Kodak plans to continue operating normally during bankruptcy.
The company will also seek to continue selling a portfolio of 1,100 digital imaging patents to raise cash for its loss-making operations.
Kodak has become the latest giant to falter in the face of advancing technology. The Borders Group liquidated last year after having failed to gain a toehold in e-books, while Blockbuster sold itself to Dish Network last year as its retail outlets lost ground to online competitors likeNetflix.
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Kodak Files For Chapter 11 Bankruptcy Protection
As film giant Kodak files for bankruptcy protection, everyone from photographers to economists is looking back at the company that was, for so long, synonymous with American photography. The company has entered the US ‘Chapter 11’ process by which a court oversees its restructuring and protects it from its creditors as it attempts to reorganize into a profitable business. However it emerges from the process, Kodak will never again be the photographic titan it was during the film era. This has prompted many retrospective articles, including a heartfelt and personal piece by New York Times writer and photography blogger David Gonzalez.
Meanwhile, The Economist has also published two interesting pieces on the company: the first comparing its fortunes with those of its Japanese peer Fujifilm, and a blog post looking at how large companies struggle with technology changes. The irony of Kodak’s dedication to research and development helping give birth to the technologies that saw its downfall is widely remarked upon.
| Kodak’s film business is still profitable, the company stresses. |
Press Release:
Kodak Emerges From Bankruptcy With Focus On Commercial Printing
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– Eastman Kodak Co EKDKQ.PK, the photography pioneer which invented the digital camera, emerged from Chapter 11 bankruptcy protection on Tuesday, with plans to continue as a smaller digital imaging company.
The new Kodak will focus on commercial products such as high-speed digital printing technology and printing on flexible packaging for consumer goods.
You cant imagine how much I have been waiting for this moment … This is a totally new company, Chief Executive Antonio Perez told reporters.
Kodak, founded in 1880 by George Eastman, was for years synonymous with household cameras and family snapshots. It filed a $6.75 billion bankruptcy in January 2012, weighed down by high pension costs and a years-long delay in embracing digital camera technology.
The new company expects to have $2.5 billion in revenue this year, Perez said.
Kodak once employed more than 60,000 people and was one of the largest employers in Rochester, New York, where it is based. Perez told reporters his most difficult task at the helm of the bankrupt company was dealing with hefty pension costs.
I would not recommend anyone to file for Chapter 11, but if you have to deal with legacy costs, in my opinion, thats the only way you can do it, Perez said.
The company said it has repaid its debtor-in-possession lenders and will receive about $406 million in new financing.
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Digital Printing And Enterprise
Kodak provides high-speed, high-volume commercial inkjet, and color and black-and-white electrophotographic printing equipment and related consumables and services. It has an installed base of more than 5,000 units.
Its Prosper platform uses Stream inkjet technology, which delivers a continuous flow of ink that enables constant and consistent operation, with uniform size and accurate placement, even at very high print speeds. Applications for Prosper include publishing, commercial print, direct mail, and packaging. The business also includes the customer base of Kodak VersaMark products.
The NexPress platform is used for printing short-run, personalized print applications for purposes such as direct mail, books, marketing collateral and photo products. The Digimaster platform uses monochrome electrophotographic printing technology to create high-quality printing of statements, short-run books, corporate documentation, manuals and direct mail.
Flexo printing
Kodak designs and manufactures products for flexography printing. Its Flexcel line of flexo printing systems allow label printers to produce their own digital plates for customized flexo printing and flexible printed packaging.
Functional printing
The company currently has strategic relationships with worldwide touch-panel sensor leaders, such as the partnerships with UniPixel announced on April 16, 2013, and Kingsbury Corp. launched on June 27, 2013.
Enterprise professional services
Digital printing solutions
Kodak Files For Bankruptcy Stock Delisted: They Were A Company Stuck In Time
Eastman Kodak Co., the photography pioneer that introduced the Brownie Camera more than a century ago, filed for bankruptcy after consumers embraced digital cameras, a technology Kodak invented and failed to commercialize.
The Rochester, New York-based company, which traces its roots to 1880, listed assets of $5.1 billion and debt of $6.8 billion in Chapter 11 documents filed in U.S. Bankruptcy Court in Manhattan.
Eastman Kodak Co.s shares declined in over-the-counter trading after the photography pioneers bankruptcy filing prompted the New York Stock Exchange to delist the securities.
They fell 45 percent to 31 cents at 1:37 p.m. New York time on volume of 49 million shares. The Rochester, New York-based companys stock symbol changed today to EKDKQ from EK.
Kodak started trading at the New York Stock Exchange in April 1905, according to data compiled by the market
They were a company stuck in time, said Robert Burley, an associate professor at Torontos Ryerson University who has photographed shuttered Kodak facilities in the U.S., Canada and France since 2005. Their history was so important to them, this rich century-old history when they made a lot of amazing things and a lot of money along the way. Now their history has become a liability.
Moodys Investors Service on Jan. 5 cut ratings on about $1 billion of Kodak debt with a negative outlook, citing a heightened probability of a bankruptcy over the near-term.
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Case Summary: Bankruptcy Settlements Reached With The Eastman Kodak Company Worth $49 Million
Press Release issued May 13, 2014
On May 13, 2014, the U.S Bankruptcy Court for the Southern District of New York approved bankruptcy settlement agreements between the U.S. Environmental Protection Agency , Department of Justice , and Eastman Kodak Company . The agreements resolve Kodaks liabilities under the Resource Conservation and Recovery Act at the Eastman Business Park in Rochester, N.Y. and the Comprehensive Environmental Response, Compensation and Liability Act at the Mercury Refining Superfund Site in Colonie and Guilderland, N.Y., and the Fair Lawn Well Field Superfund Site in Fair Lawn, N.J.
Under the agreements, Kodak commits to fund a trust with $49 million for cleanup at the EBP site and the Genesee River the New York State Department of Environmental Conservation agrees to fund any additional costs of cleanup between $49 million and $99 million and Kodak and DEC each agree to pay half of any costs above $99 million.
In the agreement between the United States and Kodak, Kodak will pay the United States $2 million for the Fair Lawn Well Field Superfund Site and approximately $750,000 for the Mercury Refining Superfund Site, plus additional amounts for each of the sites pursuant to the terms of Kodaks plan of reorganization.
Kodak Bankruptcy: Can ‘failed Company’ Find New Kodak Moment
Kodak: Bankruptcy Judge Allan Gropper approves Kodak’s plan to emerge from bankruptcy. Kodak is trying to recreate itself as a much smaller company focused on printing.
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Kodak doesn’t look a whole lot like it did when it filed for bankruptcy protection last year, but its executives and investors are hoping for a picture-perfect future.
Many of its products and services are gone, including the camera-making business that made it famous more than a century ago. Also gone are scores of workers, manufacturing facilities, supply contracts and millions of dollars in investments.
On Tuesday, U.S. Bankruptcy Judge Allan Gropper approved the Kodak bankruptcy plan, paving the way for it to recreate itself as a new, much smaller company focused on commercial and packaging printing.
Kodak said it hopes to emerge from bankruptcy protection as early as Sept. 3.
“They still have people with immense skill and who know how to win,” said Mark Zupan, dean of the business school at the University of Rochester, near Kodak’s headquarters. “But it’s also a team that has gone through hell for the last 10 to 20 years. It has been like constant water torture.”
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Why Did Kodak Fail And What Can You Learn From Its Demise
This is the second article in our Failure Stories series. Read our first article: Why did Nokia fail?
Kodak was founded in the late 1880s, became a giant in the photography industry in the 1970s and filed for bankruptcy in 2012.
For almost a hundred years, Kodak was at the forefront of photography with dozens of innovations and inventions, making this art accessible to the consumer.