Kodak preparing bankruptcy protection filing

jpb1974

Spotted this article this morning -

http://uk.finance.yahoo.com/news/kodak-prepares-chapter-11-filing-193552809.html

Would be devastating for photography if Kodak went bust

magicbastarder

not that i'd like to see them go, but it obviously wouldn't be devastating, seeing their products aren't selling...

jpb1974

Guess I should have re-phrased my OP to an opinion.

seeing their products aren't selling

You might want to re-phrase this whilst you're at it, as it isn't factually true

Paulw

Filing for Chapter 11 doesn't mean a whole lot. American Airlines did it last year, Delta Airlines did it three years ago.

It's a way of clearing down their financials, and refinancing their operations.

I wouldn't be too worried about Kodak for now.

magicbastarder

jpb1974 wrote: »

You might want to re-phrase this whilst you're at it, as it isn't factually true

i thought i'd heard that their film sales had collapsed, and that their sensor and camera sales were sluggish?

Effects

Aren't they hoping to break into industrial/commercial printing this year? Also read somewhere that they have a load of patents coming through that they hope to sell or lease.

CabanSail

Last I heard Colour Film sales were in decline, but Monochrome continue to rise.

That was maybe a couple of years ago & the Colour would be decending from a high volume whilst Mono was increasing from a low volume of product.


There are Lies, Damn Lies & Statistics.

Personally I have more than the average number of fingers, which is handy for Photography.

jpb1974

Slightly more detailed version of events here -

http://online.wsj.com/article/SB10001424052970203471004577140841495542810.html

Diabhal_Glas

(Reuters) - Eastman Kodak is working on a Chapter 11 bankruptcy protection filing that could be filed as soon as this month or early February if it cannot sell its digital patents, The Wall Street Journal reported on Wednesday, citing unnamed sources.


Shares of the struggling photo pioneer fell more than 30 percent to 44 cents on the New York Stock Exchange on Wednesday.

A spokesman for Kodak did not immediately respond for a comment.

The newspaper said Kodak is in talks with lenders to secure about $1 billion in debtor-in possession financing to sustain it through any bankruptcy proceedings

The Journal said Kodak is still trying to sell the more than 1,100 patents it put up for sale in July, which could stave off filing for bankruptcy.

If Kodak seeks Chapter 11 protection, it would try to sell its patents through a bankruptcy auction supervised by a court, sources told the newspaper. The Journal added that the company would operate normally while under bankruptcy protection.

On Tuesday, Kodak said it may be kicked off the New York Stock Exchange if it cannot boost its share price over the next six months.

Source=

http://www.huffingtonpost.com/2012/01/04/kodak-bankruptcy-chapter-11_n_1184101.html

More info here

http://www.washingtonpost.com/blogs/arts-post/post/kodak-bankruptcy-photographers-mourn/2012/01/05/gIQAxiXjcP_blog.html

jpb1974

japancamerahunter's take on the Kodak situation -

http://www.japancamerahunter.com/2012/01/kodak-film-is-not-dead/#more-1983

Run_to_da_hills

Probably inevitable, one company that was slow to move with the digital scale of things compared to Fuji.

http://www.bbc.co.uk/news/business-16625725

thefizz

Some info here from AG Photographic in the UK:

"By now most customers will have heard that Eastman Kodak has filed for Chapter 11 Bankruptcy Protection in the USA. We want to explain to customers that, despite emotive media reports, this does not mean the company ceases to exist - Kodak continues to trade as normal, the only difference being that much of their liabilities, they are now protected from.

In our view this is a good move for Kodak because:

1. It means they can re-organise the company without the threat of the liabilities that have hung over the business in recent years;

2. They can re-finance the company. By making the move into bankruptcy protection they have been able to secure $950m of funding from Citibank

3. For a number of years it has seemed top management in the company have been obsessed with Wall Street and the share price of the company. In our opinion this has been a hinderance to the effective management of the business. Now the company is de-listed from the NYSE, they don't have to concern themselves with Wall Street and can take decisions freely.

4. It is expected the company will remain in Chapter 11 for around 12 months, at the end of which a new Kodak will emerge."