Earlier this month we told you about how Kodak were trying to fight off the prospect of entering chapter 11 bankruptcy protection. Now today we have news that an end of an era is reached as Kodak files for Chapter 11.
It has been officially announced that Eastman Kodak has entered Chapter 11 bankruptcy protection in the US, which will mean the aging company can still trade while it restructures itself. The company will continue as normal, and if it gets Court approval has secured a $950 million credit facility from Citigroup according to a report on TechRadar.
Kodak has confirmed it expects to continue to honor staff wages, and supplying products and services. The company has released a statement and Chairman and Chief Executive Officer, Antonion M. Perez, thanked the company’s staff, and hopes to have the restructuring of the business completed by 2013.
He stated that while the company has created their digital business they have also moved away from certain traditional operations. Kodak has closed thirteen plants and a number of processing labs, and has cut staffing levels by 47,000 since 2003.
Kodak will be looking to protect its digital capture patents, and the company has said that licensing agreements have earned it over $3 billion during the last nine years. Kodak has been actively pursuing alleged patent infringements recently, with the likes of Apple and Fuji under the spotlight.
As the news of the Chapter 11 move was made public by the company, it was also announced a new lawsuit was being issued against Samsung for possible patent infringements. It is being claimed that some of Samsung’s tablet PCs are breaking five of Kodak’s digital imaging patents. It has to be remembered other companies have filed for Chapter 11 and came out the other side stronger than before.
Are you sad about the news about Kodak?