Kodak Close to Finish Line in Bankruptcy Case
After filing a $6.75 billion bankruptcy, Eastman Kodak Co, once a might photography pioneer, earned court approval on Tuesday from a plan to emerge from bankruptcy. Back in January of 2012, Kodak had to file for a Chapter 11 bankruptcy because of high pension costs and years-long delay in embracing new technology. Kodak had several missed opportunities including exploring digital cameras, photo sharing, and photo viewing. The company was entrenched in the film business, and they felt to embrace digital meant to destroy its own business.
Kodak has sold off assets, including its consumer-focused operations, and will emerge from Chapter 11 to focus mainly on commercial products such as high-speed digital printing technology and flexible packaging for consumer goods. Their new structure means a lower public profile for Kodak’s iconic name and its expected revenues, roughly $2.5 billion, are about half of what it had when it filed for bankruptcy. Unfortunately in bankruptcy, Kodak failed to obtain significant value for its portfolio of patents, where experts said was a crucial reason it had to sell core businesses and reinvent itself. General unsecured creditors are likely to receive on their payout 4 to 5 cents on the dollar. Hopefully, with their new corporate restructure and business plan, the company will have their own “Kodak moment” once again.
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