Camera and printer manufacturers Kodak have filed for Chapter 11 bankruptcy protection, ending months of speculation of to the fate of the 131 year old company.
The company will go through a dramatic period of reorganisation, entering a protected period and taking $950 million worth of credit to settle their sinking ship.
“Kodak is taking a significant step toward enabling our enterprise to complete its transformation,” said Antonio M. Perez, chairman and CEO.
“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. Now we must complete the transformation by further addressing our cost structure and effectively monetising non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.
“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,” Mr. Perez continued.
“Our goal is to maximise value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.”
A glimmer of hope lies in Kodak’s sizeable patent catalogue, the sale of which has already generated $3 billion for the company since 2003.