01/19/2012 04:48:00 PM EST
Citing $6.75 Billion In Debt, Eastman Kodak Files Chapter 11 Bankruptcy
NEW YORK -- The Eastman Kodak Co. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on Jan. 19, citing $6.75 billion in debt (In Re: The Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
Kodak's assets are $5.1 billion and its debts are $6.75 billion, according to Chief Financial Officer and Senior Vice President Antoinette P. McCorvey.
McCorvey said that market conditions in 2008 affected Kodak heavily. Furthermore, McCorvey said that as a result of reduced revenue from the company's digital cash-generating business, Kodak could not proceed with digital growth initiatives.
Additional challenges to the company's liquidity are based on the fact that post-employment benefits continue to consume a substantial amount of Kodak's cash.
Kodak also said cash flow from licensing and the sale of intellectual property was delayed as a result of litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges, McCorvey said.
Furthermore, near the end of 2011, negative publicity and other external issues caused substantial strains on trade credit, she added.
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