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Thursday
Jan192012

Kodak Files for Chapter 11 Bankruptcy

Daniel Acker/Bloomberg News(ROCHESTER, N.Y.) -- After much speculation, Eastman Kodak Co. officially announced on Thursday it has filed for Chapter 11 bankruptcy protection.

The photography and imaging equipment company and its U.S. subsidiaries “filed voluntary petitions for the reorganization in the U.S. Bankruptcy Court for the Southern District of New York,” according to a news release posted on Kodak’s website early Thursday morning.

According to the company, the move is intended to “bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines.”  In addition, the company said it has received $950 million in financing from Citigroup to maintain operations as it goes through bankruptcy.

Earlier this month, the Wall Street Journal reported that Kodak was preparing for bankruptcy in the “coming weeks” in case efforts to sell its patents fell through.

Kodak has long struggled with reinventing itself as a technology company amid advancements in digital cameras and photo sharing.

The company has closed 13 manufacturing plants and 130 processing labs, and has reduced its workforce by 47,000 since 2003, the release said.

Earlier this month, Kodak disclosed that the New York Stock Exchange warned the company’s shares could be delisted unless it gets its finances in order in the next six months.

Copyright 2012 ABC News Radio

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    Kodak Files for Chapter 11 Bankruptcy - Business News - ABC News Radio

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