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Entries in Chapter 11 (16)

Thursday
Feb092012

Kodak to Stop Making Digital Cameras This Year

Daniel Acker/Bloomberg News(ROCHESTER, N.Y.) -- Say goodbye to capturing Kodak moments.

On the heels of its Chapter 11 bankruptcy filing, Eastman Kodak Company announced on Thursday it will stop making digital cameras during the first half of this year to focus on more profitable areas of the company.

In a statement, the company said it, "plans to phase out of the market for dedicated capture devices -- digital cameras, pocket video cameras and digital picture frames -- during 2012 to focus its Consumer Business on desktop inkjet, online and retail-based printing: areas that offer the most significant opportunities for profitable growth."

Kodak says it will continue to offer camera accessories and batteries that are compatible with other brands.  The company will also, "continue to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames."

Thursday's announcement comes after the company filed for bankruptcy protection on Jan. 19 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.” 

Copyright 2012 ABC News Radio

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

Wednesday
Jan112012

Twinkies Maker Hostess Brands Files for Chapter 11 Bankruptcy

Justin Sullivan/Getty Images(NEW YORK) -- Hostess Brands, Inc., the maker of such iconic food products as Twinkies, Ding Dongs and Wonder bread, has filed for Chapter 11 bankruptcy protection in New York, the company announced Wednesday.

Explaining its need for reorganization, Hostess said in a statement: "The Company's current cost structure is not competitive, primarily due to legacy pension and medical benefit obligations and restrictive work rules.  Those issues, combined with the economic downturn and a more difficult competitive landscape, created a worsening liquidity situation."

The company assured customers that it will continue to operate its bakeries, stores and distribution centers during the bankruptcy and will not cease the delivery of its goods.

But Twinkie lovers can rest easy: Hostess said it does not expect the filing to cause, "any disruptions in the manufacturing and delivery of any of its bread or cake products."

Copyright 2012 ABC News Radio

Thursday
Dec082011

Jon Corzine to Testify on MF Global: 'I Don't Know Where the Money Is'

Stephen Yang/Bloomberg via Getty Images(WASHINGTON) -- Former New Jersey Gov. Jon Corzine plans to tell Congressmen on Thursday he, "simply [does] not know where the money is" when he testifies before a House Committee investigating the bankruptcy of the financial firm he ran.

As much as a billion dollars in client funds are unaccounted for following the collapse of MF Global, and in prepared remarks, Corzine says he was "stunned" to learn it went missing.

He says he accepts responsibility for the trades that lead to the firm's demise and "sincerely apologize[s], both personally and on behalf of the company, to our customers, our employees and our investors, who are bearing the brunt of the impact of the firm’s bankruptcy."

Corzine had been expected to plead the Fifth Amendment, but in his remarks, he says he'll answer questions to the best of his ability.

However, the former chairman and CEO of MF Global cautions that "since my departure from MF Global on November 3, 2011, I have had limited access to many relevant documents, including internal communications and account statements, and even my own notes, all of which are essential to my being able to testify accurately about the chaotic, sleepless nights preceding the declaration of bankruptcy."

"While I intend to be responsive to the best of my ability today, without adequate time and materials to prepare, I may be unable to respond to various questions members might pose," he will go on to say.

[CLICK HERE TO READ CORZINE'S PREPARED STATEMENT]

Copyright 2011 ABC News Radio

Tuesday
Nov292011

American Airlines' Parent Company Files for Chapter 11

Joe Raedle/Getty Images(FORT WORTH, Texas) -- American Airlines announced on Tuesday that its parent company, AMR Corporation, has filed for Chapter 11 bankruptcy protection.

In a statement, the carrier said the decision to reorganize was made "in order to achieve a cost and debt structure that is competitive in the airline industry," adding that it was in the "best interest of the Company and its stakeholders."

"This was a difficult decision, but it is the necessary and right path for us to take -- and take now -- to become a more efficient, financially stronger, and competitive airline," said Thomas W. Horton, the president of AMR and American Airlines.

In a separate move, Horton was named Tuesday as the new chairman and CEO of AMR, succeeding Gerard Arprey, who announced on Monday his decision to retire.

Despite the filing, American Airlines says it expects to continue operating normally while it straightens out its finances.

Copyright 2011 ABC News Radio

Wednesday
Oct052011

Friendly's Files for Chapter 11 Bankruptcy; Closes 63 Restaurants

Suzanne Kreiter/The Boston Globe via Getty Images(WILBRAHAM, Mass.) -- Friendly's announced Wednesday it has filed for Chapter 11 bankruptcy protection due to the country's struggling economy and the rising prices of commodities.

The nationwide restaurant chain said 424 locations will remain open for business, while 63 others have been closed as part of the company's restructuring plan.  The majority of these closures took place in Massachusetts, where 29 restaurants have been shut down.

[Click here and scroll down to see if a Friendly's restaurant near you has closed]

In a statement Wednesday, Friendly's Chairman and CEO Harsha V. Agadi said, "Thanks to our dedicated employees and franchisees, we have made a lot of progress, but our Company continued to face significant financial challenges.  This was exacerbated by the weak economy and rapidly rising commodity costs that have impacted the entire restaurant industry."

"The strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position and ensure we have the resources to build a better and stronger Friendly's for our loyal guests, retail customers, suppliers and other business partners," Agadi added.

Copyright 2011 ABC News Radio

Tuesday
Jul192011

Borders to Close All of Its Remaining Bookstores

Tom Pennington/Getty Images(ANN ARBOR, Mich.) -- The Borders bookstore chain, which has been struggling financially for several years, announced Monday that it will be closing for good, shutting down all of its remaining 399 stores.

The company filed for Chapter 11 bankruptcy protection in February and shuttered dozens of outlets in an attempt to survive, but had no choice but to close up shop when a bid from a private equity group fell apart last week and no other bidders came forward.

Borders Group President Mike Edwards issued a statement saying, “We were all working hard towards a different outcome, but the headwinds we have been facing for quite some time including the rapidly changing book industry, e-reader revolution and turbulent economy have brought us to where we are now.”

The company was started as a used bookstore in 1971 by brothers Louis and Tom Borders in Ann Arbor, Michigan, where the company maintains its flagship store.  At its peak in 2003, Borders operated over 1,200 stores nationwide.

The company says liquidation sales at Borders stores could begin as early as Friday, including at Waldenbooks stores, also owned by Borders.

Copyright 2011 ABC News Radio

Monday
Jun272011

Los Angeles Dodgers File for Chapter 11 Bankruptcy

Joe Robbins/Getty Images(LOS ANGELES) -- The Los Angeles Dodgers filed for Chapter 11 bankruptcy protection Monday, citing the league's refusal to approve a television deal that the team says would have solved its “cash flow challenge.”

“[Major League Baseball commissioner Bud Selig]'s turned his back on the Dodgers, treated us differently, and forced us to the point we find ourselves in today,” Dodgers owner Frank McCourt said. “I simply cannot allow the Commissioner to knowingly and intentionally be in a position to expose the Dodgers to financial risk any longer.  It is my hope that the Chapter 11 process will create a fair and constructive environment to get done what we couldn't achieve with the Commissioner directly."

The team has been working on a television deal with FOX that would “immediately infuse hundreds of millions of dollars of capital into the Los Angeles Dodgers,” the Dodgers said in explaining the bankruptcy filing.

“The Commissioner's office last week rejected the deal, despite having been made aware by the Dodgers since the spring of 2010 of the franchises' cash projections and in turn liquidity needs for 2011.”

The organization has received a $150 million commitment in Debtor-in-Possession financing.

Day-to-day baseball and business operations should continue as usual, the team said.

ESPN's Jayson Stark said the Chapter 11 filing prevents the franchise from being seized by Major League Baseball.

"Everything now gets thrown into the hands of a bankruptcy court. And the bankruptcy judge now determines where the franchise goes from here, not Bud Selig," Stark said.

Copyright 2011 ABC News Radio

Sunday
Apr172011

Philadelphia Orchestra Files for Chapter 11 Bankruptcy

Comstock/Thinkstock(PHILADELPHIA) -- One of the world’s top performing orchestras, the Philadelphia Orchestra, has filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court.

In an announcement Saturday, orchestra officials say the decision to file for bankruptcy was made by its board of directors, based upon financial challenges facing the organization. According to a news release issued by the group, the Philadelphia Orchestra is faced with dwindling operating funds and a structural deficit of $14.5 million. Officials say the organization is operating at a significant loss, due to a decrease in ticket revenues and other income, and an increase in operational costs.

Orchestra officials are hoping that the decision to file for bankruptcy will allow the orchestra to continue operating, while its finances are restructured. Officials say all of the orchestra’s remaining concerts for the 2010-2011 season will go on as scheduled.

Copyright 2011 ABC News Radio

Wednesday
Apr062011

DISH Network Wins Bid for Blockbuster at Bankruptcy Auction

PRNewsFoto/DISH Network L.L.C.(ENGLEWOOD, Colo.) -- DISH Network Corporation announced Wednesday it won a bankruptcy court auction for Blockbuster, Inc., the large video rental company that filed for Chapter 11 bankruptcy last year.

After battling it out with other prospective buyers, DISH Network's winning bid came in at approximately $320 million.  The satellite service provider expects to pay a total of about $228 million to acquire Blockbuster after some adjustments are made at the closing, which is planned for the second quarter of quarter of 2011.

"With its more than 1,700 store locations, a highly recognizable brand and multiple methods of delivery, Blockbuster will complement our existing video offerings while presenting cross-marketing and service extension opportunities for DISH Network," said Tom Cullen, executive vice president of sales, marketing and programming for DISH Network.  "While Blockbuster's business faces significant challenges, we look forward to working with its employees to re-establish Blockbuster's brand as a leader in video entertainment."

Blockbuster decided to sell the company back in February of this year when creditors could not come to an agreement about a recapitalization plan for the company.

Copyright 2011 ABC News Radio







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