Eastman Kodak Files for Chapter 11 Bankruptcy

Photography giant Eastman Kodak filed for Chapter 11 bankruptcy protection Thursday morning in the Southern District of New York. The company intends to continue business operations during the restructuring, and the company has secured $950 million in financing from Citigroup. Kodak has also hired Dominic DiNapoli, vice chairman of FTI Consulting, as its chief restructuring officer. It will also continue to sell much of its vast patent portfolio to increase liquidity and working capital.

Although commentators have viewed the bankruptcy as a result of Kodak's failure to adjust to an increasingly digital world, Kodak notes that it has made large investments in digital technologies and that its digital businesses generated roughly 75 percent of its 2011 revenue. Chairman and Chief Executive Officer Antonio M. Perez characterized the filing as "a significant step toward enabling our enterprise to complete its transformation [to a digital business.]" Perez said that he expects the company to emerge from the restructuring as a "lean, world-class, digital imaging and materials science company."  

The company has set up a website with information about the restructuring, which includes a copy of the bankruptcy filing and a video message from Perez. The site contains information for consumers, suppliers, commercial customers and other concerned parties, along with links to court documents and proof of claim forms.  The restructuring is expected to be completed by 2013.

Kodak press release