Kodak Filing Bankruptcy
Eastman Kodak is reported to be working on a Chapter 11 bankruptcy protection filing that may be filed this month or by February. Kodak, a pioneer company among photography and film, has found it difficult to keep up with the progress of photography by its low movement toward digital media. Ironically the 131 year-old company developed the first digital camera in 1975, however Kodak failed to stay on top of the digital revolution. Kodak made a digital comeback and ranked number one in digital sales in the United States, but apparently got lazy and held too firm to the nostalgia of film cameras.
In order to avoid going bankrupt Kodak must sell its cache of 1,100 digital-imaging patents. The cost of which could fetch up to $3 billion. This past November Kodak admitted the possibility of running out of money if the patents weren’t sold within a year. The company’s shares fell 28% on Wednesday to 47 cents a share. Shares continued to fall after hours on Wednesday night as well. Kodak was warned by the New York Stock Exchange this week that if their shares stay below $1 over the next six months, then they will be dropped from the listings. All in all the pioneer photography company is not in good shape.
The Future for Kodak
There has been talk that Kodak will have to try and secure close to $1 billion in debtor-in- possession financing in order to make it through bankruptcy proceedings. Through any bankruptcy proceedings, Kodak would function normally as it continues to sell its 1,100 patents. The sales however, would have to be through a court-supervised bankruptcy auction. Photographers are mourning the potential death of the pioneer company that has motivated their art for their whole lives. At this point all Kodak can rely on is their packaging and software business to at least double and save them within the next year.
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The down economy is effecting everyone from Kodak all the way down to individual households. If you are struggling financially and think that bankruptcy might be right for you then call us today to have your questions answered. We offer free consultations and can help you understand the benefits of bankruptcy before you make a decision. Call or email us to set up a free consultation.