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Kodak Files for Bankruptcy

Future looks bleak for photography pioneer's workers, retirees

By Rob Quinn,  Newser Staff

Posted Jan 19, 2012 1:47 AM CST | Updated Jan 19, 2012 6:30 AM CST

(Newser) – The once-mighty Eastman Kodak company has filed for bankruptcy. The 131-year-old firm, unable to reinvent itself quickly enough for the digital age, filed for Chapter 11 bankruptcy protection this morning after running out of cash to fund its turnaround, the Wall Street Journal reports. The company says it has secured a $950 million line of credit from Citigroup to allow it to keep operating during restructuring.

Kodak—which has cut 47,000 jobs and closed 13 manufacturing plants since 2003—tried to sell off its digital imaging patents to raise funds but the prospect of the company going bust scared potential buyers away. The company, which switched focus to inkjet printers as film sales dived, says it plans to keep operating normally, but the future of many of its 19,000 employees is in doubt and hundreds of millions of dollars are likely to be cut from its pension obligations.
Kodak listed $5.1 billion in assets and $6.75 billion in debt in its bankruptcy petition.
Kodak listed $5.1 billion in assets and $6.75 billion in debt in its bankruptcy petition.   (AP Photo/Matt Rourke, file)
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COMMENTS
Showing 3 of 14 comments
bonongo
Jan 19, 2012 6:22 PM CST
This is doubly depressing -- first, we lost Kodachrome -- hands down the best film ever devised -- at the end of last year, and now the whole company may be on the way out.  It is true that Kodak failed to keep up with the digital times . . . but as a photographer, I'm not sure what we've gotten is as good. Digital has convenience, but the images from digital photos, even at the higher densities of pixels, can't hold a candle to the quality of film. It reminds me of the expression "Betamaxed" -- when one technology is outsold by an inferior competitor.  Of course, VHS tapes are going away, too . . . . 
Observer
Jan 19, 2012 12:34 PM CST
sad day for a global culture changing institution. I owe Kodak a great deal for the 40 years of pleasure I have gotten from picture taking. We will miss those Kodachromes. An era has died. http://www.youtube.com/watch?v=SExsuRIGAlg  RIP Kodak.
Major7
Jan 19, 2012 11:29 AM CST
Well it's chapter 11.  They want to live to fight another day. They've made some of the worst mistakes a business can make, but best of luck to them.

 
bankruptcy • Kodak • Eastman Kodak • photography • Chapter 11 • bankruptcy protection

 
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