Kodak Files for Bankruptcy Protection

[Cristian_25H]

Despite numerous efforts throughout the last decade, Kodak still hasn't been able to turn its business around. The once mighty imaging company has been on a downwards trend for a long time and now, in 2012, things reached critical levels as it decided to file petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.

According to Kodak, this move will enable it to 'bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities' and will allow it to 'focus on its most valuable business lines'.



"After considering the advantages of chapter 11 at this time, 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," said Antonio M. Perez, Chairman and Chief Executive Officer. "Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers."

"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."

To get the reorganization done, Kodak got a $950 million debtor-in-possession credit facility from Citigroup. During this endeavor, the company will continue to pay employee wages and benefits. Customer services won't be affected either.

Kodak's plan is to complete the restructuring of its US-based business in 2013.

In related news, this week Kodak also announced that it filed a complaint with the U.S. District Court for the Western District of New York, accusing Samsung Electronics of infringing five of its patents.

View at TechPowerUp Main Site

 

[NC37]

Totally lost their brand recognition with the onset of the digital camera age. Used to see them sponsoring things all the time, then less and less. Net companies taking over. Then poor reception of new products with mediocre reviews. Cheaper materials.

Been worried about Canon too. Some of their products have really felt cheaply made as the years have gone by. But then they've diversified better. They aren't just known for one type of product. Kodak was just too recognized for their film.

 

[Super XP]

I like Kodak, there customer support is one of the best in the industry IMO. I still continue to buy Kodak supplies for my Kodak printer. You can print a truck load of high quality pictures on just one of there 5 colour cartridge pack for under $25. Beat that

Samsung should do the right thing and pay up.

 

[djisas]

Their film cameras and aps cameras used to be very attractive, i personally wouldn't buy anything else back then, and i do own an aps model and a normal one, i really loved my cam, fantastic photos where taken...

But now with the digital, i have to admit i wouldn't buy kodak, i would Sony or the panasonic lumix which are also quite attractive too...

 

[Raw]

Sort of ironic KODAK developed the digital camera. They then brought it to market and let it die.
Makes one wonder what was really going on in that company. How could a company with such educated people just let it all go. How could these Harvard graduate managers not see that the very technology they themselves invented and developed was the future?

I do know this...Kodak made a lot of people in Rochester, NY very well off.
I'm talking about mid to upper management personnel.
You have to see some of their many million dollar homes on East Ave. here in Rochester and many in the suburds, like Brighton, NY homes on Ambassador Rd., Sandringham Rd., etc.
Even the regular worker at Kodak made a decent living there until the 90's. I believe the average salary yearly was >40K.
I myself worked there in the 80's and made great money. And the benefit package was above and beyond anyone elses in the area. Not to mention the yearly bonus that averaged over 3K back then. And back then, 3K was a lot of money.
Such a shame to see this happen.

 

[Chaitanya]

Been worried about Canon too. Some of their products have really felt cheaply made as the years have gone by.

Canon is run by some of the most arrogant people on planet. They have been gone from bad to worse in last few years. Lets hope they don't end up like Pentax or Kodak. Feel very sad for Kodak as they were the first ones in digital imaging.

 

[ironwolf]

I can see a whole flock of vultures flying around Kodak HQ right about now... Their patent portfolio alone would make a very tasty treat.

 

[TheMailMan78]

This is amazing. Kodak survived the great depression yet cannot survive today.

 

[Steevo]

A board of directors who probably get paid a enormous amount by voting themselves raises.


I know a guy that worked for Kodak as a senior engineer, and he developed a way to extract almost 100% of the gold that went into the processing for black and whites. They rewarded him for his idea by demanding the process information and firing him, then suing him.

 

[TheMailMan78]

A board of directors who probably get paid a enormous amount by voting themselves raises.


I know a guy that worked for Kodak as a senior engineer, and he developed a way to extract almost 100% of the gold that went into the processing for black and whites. They rewarded him for his idea by demanding the process information and firing him, then suing him.

Did they take his red stapler too?

 

[Steevo]

I'm not sure. But he ended up losing his home and car from it. He runs a recycling center that specializes in electronics, they recover gold and other metals. I worked for them for a couple years while in school.

 

[Deleted member 24505]

KODAK invented the digital camera, and then let everyone else get ahead in the development, its a shame, KODAK is one of the most recognized brands in photos i reckon.

Gotta be some bad management there somewhere.

 

[FordGT90Concept]

Kodak was just too recognized for their film.

Yup, and with everything going digital, they don't have a monopoly on anything anymore. They had to compete with numerous competitors and never really succeeded at it.

 

[Moose]

This is amazing. Kodak survived the great depression yet cannot survive today.

The 2008 depression has happened though.

 

[Super XP]

Kodak is still around and kicking, this move should help them restructure the company for the better.

 

[Completely Bonkers]

Kodak still has ENORMOUS revenues from licensing and patent fees.

The problem is that they got so fat and lazy and spent money like it was growing on trees. Too many people being paid too much for too little invention and innovation. They really were riding on their history and not planning, building, developing and SAVING for the future.

They "deserve" to go down, in a corporate and strategy and operational sense. I'm sorry for the individual employees who are now people (possibly) without jobs... but big picture wise, this is complete corporate mismanagement for the last 15 years. It reminds me of many "public companies" where there is no concept of performance, only "take".

Makes a nice MBA case study I guess.