Posted by Shirley Brady on November 12, 2012 12:29 PM
Eastman Kodak Co. has reportedly arranged financing to exit from bankruptcy. Bloomberg hears that $739 million has been raised by the embattled photo giant's executives, enough to exit bankruptcy in the first half of 2013. "Funding is conditional on selling its patent portfolio for at least $500 million, progress in the sale of two business units and the resolution of the company’s U.K. pension obligations," Bloomberg notes.
In addition to laying off almost 4,000 employees worldside, the company is reducing costs by selling off unprofitable businesses, so it's selling, as Bloomberg notes, "its consumer- film, photo-kiosk and commercial-scanner businesses; continuing an extended effort to auction its digital-imaging patents; and shuttering its consumer inkjet printer sales."
“Since our Chapter 11 filing in January, we have focused on the businesses that are core to our future strategic direction and exited businesses that were unprofitable,” commented Antonio M. Perez, Chairman and CEO. “The actions we are taking in response to economic and market conditions are working and will position us to emerge in 2013 as a growing, profitable, sustainable company.”
On Friday a Manhattan federal judge dismissed a shareholder lawsuit, ruling that Kodak executives used their best efforts to transform the company before resorting to a Chapter 11 bankruptcy filing to reorganize the company. As a reader commented on our January 18th story on Kodak's bankruptcy filing noted, "Kodak invented a digital camera in 1975 but failed to capitalize on it, to the ultimate failure of the brand." What do you think the Kodak brand needs to do to survive?