Kodak has been dragging its heels on this for a long time, but it has finally come to this: the Eastman Kodak Company has filed for bankruptcy.
Eastman Kodak Company has been in the business for over 130 years. It raked in huge profits early on by selling inexpensive cameras and film processing supplies and equipment, like photo paper, chemicals, and film. However, it went on to pass on several major opportunities (including becoming the official film sponsor of the 1984 Olympics) and was too slow in making its move into digital technology.
However, they aren’t throwing in the towel yet. After filing for Chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York, Kodak announced that they were able to obtain an 18-month credit facility from Citigroup of $950 million to keep things going, at least for the meantime.
In the press release, Antonio M. Perez, Chairman and Chief Executive Officer of Kodak, stated: “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.”
He went on to add: “Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core intellectual-property assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.”