Have Kodak hit hard times and accepted that the show is over as bankruptcy looms:
Did you know that Kodak actually invented the Worlds first digital camera in 1975.
So, with Kodak having a huge list of “firsts” under their belt, it is rather a sad day when an originally innovative company such as Kodak, who had such global weight in the technology and imaging sector, looks like it will decide to file for bankruptcy as it can not compete in any of the territories it currently operates in, and in some cases dominated. Believing that Chapter 11 Bankruptcy is the way forward.
This type of bankruptcy gives a corporation some time to continue trading and hopefully find a rescue package while benefiting from certain bankruptcy rules that normally apply.
Kodak sell off patents:
When you are a 131 year old company with Kodak’s pedigree (albeit somewhat off kilter of recent years) you are likely to have some pretty juicy patents in the cupboard, and Kodak are well and truly in the market for selling some of these off.
With a rumored 1,100 patents Kodak are wanting to claw back some cash in the run up to the expected bankruptcy filing, and are hoping that they can then obtain a $1 billion package that will aid their operational requirements while they are going through the bankruptcy proceedings, with an unknown outcome at the end of this process.
Kodak bankruptcy will mean job losses?
With Kodak currently employing some 19,000 + people globally, many will be worried that this news could signal the death of the company that pays their wages in the coming months.
In a rather sombre note, Mr Eastman the Kodak founder took his own life aged 77 saying:
“To my friends, my work is done. Why wait?”
I wonder if his legacy will see Kodak the company see the same fate, or, if the raising of capital after the sale of patents and a rally for cash, will be enough to look into keeping other areas alive that Kodak operate in, though these look decidedly scary from an investors view.
With Kodak recently deciding to focus on the printer market and only managing to achieve just short of 3% market share in the months up to the end of 2011, what do you think Kodak should do?
Kodak’s Illustrious past:
Here is an infographic list of Kodak Historic Milestones achieved in their 130+ years of trading so far.
Is it likely they will find a buyer for the company while under chapter 11 bankruptcy proceedings, or will they slowly let the company die, while salvaging as much cash from the sale of patents on the way?Anthony Munns