Kodak Officially Files for Chapter 11 Bankruptcy Protection
Eastman Kodak has filed for Chapter 11 in an effort to stay afloat while it undergoes a lengthy restructuring.
Imaging company Kodak has filed for Chapter 11 Bankruptcy protection. The news comes a little over a fortnight after the Wall Street Journal cites sources that said Kodak would file before the end of January. According to the filing, which was obtained by the folks over at the Verge, Kodak had $5.1 billion in assets and $6.75 billion in debt as of September 30th, 2011.
The company today revealed that it has obtained a $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup and expects to complete restructuring by 2013. Kodak has also called in Lazard, FTI Consulting Inc. and Sullivan & Cromwell to advise in the restructuring. Dominic DiNapoli, Vice Chairman of FTI Consulting, has been named Chief Restructuring Officer.
"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez, Chairman and Chief Executive Officer.
"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," he continued. "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."
Kodak has a portfolio of 1,100 patents, mostly relating to digital-imaging. Though Perez mentioned monetizing the company's non-core IP assets, he did not clarify whether this meant Kodak would be looking to sell of some, or even all, of its patents. Wall Street Journal sources that predicted the filing said that the company would only file for Chapter 11 if efforts to sell off a 'trove of digital patents' were unsuccessful.
You can read more about Kodak's restructuring and Chapter 11 filing on the website the company has set up. There you'll find information for everyone from consumers to commercial partners and employees.