Well, this is a Kodak moment that turns the catchphrase on its head. Eastman Kodak Co. and its U.S. subsidiaries are now legally under court-supervised reorganization.
In an irony-tinged move, the household name of photography has created a website specifically to disseminate definitive information about its status, along with links to relevant lawyers and official forms and the other elements of operating under a voluntary Chapter 11 business reorganization.
Stereotypes notwithstanding, Kodak emphasized that in 2011 the company garnered 75 percent of its revenue from digital businesses.
“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. … We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.”
He specified that eliminating these operations included closing 13 manufacturing plants and 130 processing labs, as well as reducing its workforce by 47,000 since 2003.
Kodak has obtained a $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup, which it believes will enable it to pay its employees and other obligations as well as to continue providing goods and services.
Kodak filed its petitions in the U.S. Bankruptcy Court for the Southern District of New York. The company and its board of directors are being advised by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. In addition, Dominic DiNapoli, vice chairman of FTI Consulting, will serve as chief restructuring officer.
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