As Eastman Kodak struggles to handle its obligations under a business bankruptcy filing, the third quarter postings indicate that the losses for the company were $312 million. This is almost $100 million more than the $222 million loss posted for the third quarter of 2011. Part of the reason may come from a 19 percent decline in revenue over last year’s figures.
The company has now released 2,800 workers since January and claims that part of the loss is associated with the costs of eliminating 775 jobs for the quarter. The company filed for bankruptcy in January after severe losses in its digital photo division and increasing competition from Japanese manufacturers.
As part of the bankruptcy, Kodak is attempting to sell its patents for digital imaging but is having trouble finding buyers. The company is considering selling its document imaging divisions in order to meet the terms of its bankruptcy plan and stay alive in some form.
Bankruptcy is not the only option for business facing serious financial difficulties, but there can be benefits to filing a business bankruptcy, especially if the company wants to take advantage of protections offered by the bankruptcy court to shield assets from creditors. Business bankruptcies may give a struggling business time to sell assets and reorganize its financial structure so that it can continue to function. A bankruptcy attorney can explain the options available to a business owner so that he or she can make a good decision about the best way to protect the company’s future.
Source: The Arizona Republic, “Kodak loss widens to $312 mil,” Oct. 31, 2012