Kodak Files For Chapter 11 Bankruptcy While Restructuring Core Business

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Kodak Files For Bankruptcy:

We have already reported that Kodak was due to apply for Chapter 11 Bankruptcy, which will allow them to continue to trade until a restructuring and funding exercise went ahead and hopefully saved all or part of the core business.

After weeks of speculation Mr Perez, Kodak’s CEO under siege stated:

“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,”

Kodak assets and debt:

With assets of some $5.1 billion and debts of some $6.75 billion, the debts are made up of some 40 entities who each lay claim to small to large debts owed by the company, these range from Walmart being owed a measly $11.4 million right up to Bank of New York Mellon which is owed a rather huge $668 million.

Hollywood debts:

People forget that Kodak worked with the movie industry and were not just based purely in print, and with these relationships in mind it has been noted that they owe Warner Brothers and Disney large sums of money also.

Citigroup to the rescue?

So with such a large company bowing under such a large amount of debt, who in these money worried times would want to lend to a company that seemingly needs so much restructuring and guiding to a new profitable path?

Well Citigroup has committed nearly $1 billion in credit to help aid the company restructure their finances under chapter 11, and this should help to alleviate concerns of the 17,000 string global workforce who are obviously concerned about the safety of their jobs with the news.

At its peak Kodak employed some 130,000 globally in the mid 1980’s.

4 objectives while under chapter 11:

Mr Perez has stated in a video on the Kodak website that they have four main aims to achieve while under chapter 11 protection and they are:

Kodak Press Release from process supplies on Vimeo.


  • Obtaining the financing to reassure its employees, customers and other stakeholders that the company will stay in business.
  • Enabling it to pursue patent infringement claims against major companies including Apple Inc.
  • Adjusting its “legacy costs” to a fairer level.
  • Driving growth in the printing businesses which MrPerez has declared is Kodak’s future.


Kodak File For Bankruptcy
Kodak File For Bankruptcy

Kodak want to sell patents but feel better positioned with help:

While under court supervision it seems Kodak feel better positioned to sell patents that could fetch some serious money, with a rumoured $3 billion potentially up for grabs.

“The business reorganization is intended to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the company to focus on its most valuable business lines,”

With some 27,00 retirees in Kodaks home county of Rochester alone, some are worried that these veterans will be affected most by the move but many feel that it is the best direction for the company with many firms emerging after Chapter 11 protection in a better shape than they were prior, and continue to trade in some capacity where otherwise they would have simply gone under.

Times they have a changed:

I remember the days, back in the early 90’s when I thought I was really cool with my Super 8 mm on Bournemouth beach taking arty shots of all my friends smoking, drinking and messing about, then sending my Kodak pre-paid three minute super 8mm film back to a development lab in order to wait for three weeks until it was processed and dutifully sent back to watch on any white wall via a small projector, oh how times have changed.

I do hope Kodak find a way out of this predicament but am not convinced that they have the dynamic nature in their core business to really come out fighting and forge a path in a market so competitive and difficult to compete in as the print industry, but then again I know nothing much about it in all honesty!

Want to look at a history of Kodak, take a look at our infographic here:

What do you think Kodak should do, and are you worried about your job if you work for the firm?

Anthony Munns