Eastman Kodak Files For Chapter 11 Bankruptcy
Rochester, NY (WIBX) - Eastman Kodak is filing for Chapter 11 bankruptcy protection. The bankruptcy filing came early this morning in New York. The iconic 131-year-old photo company has secured $950 million dollars in financing from Citigroup to help keep it afloat during the bankruptcy proceedings.
A released statement from the company states, "Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course."
Antonio M. Perez, Chairman and Chief Executive Officer said, "Kodak is taking a significant step toward enabling our enterprise to complete its transformation. At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company." He goes on to say that the decision was unanimously supported by the Board of Directors and the entire senior management team.