Friday, January 20, 2012

Kodak Files for Bankruptcy

Kodak Files for Bankruptcy - Eastman Kodak, the once mighty icon of the photography industry, filed for Chapter 11 bankruptcy protection Thursday. Kodak's stock plunged 35% at the start of trading. The New York Stock Exchange suspended trading within a few minutes after the opening bell. The company said it has obtained $950 million in financing from Citibank to maintain operations. The company said the credit facility is still subject to court approval. Kodak said it has enough liquidity to continue operating during the bankruptcy process. Kodak acknowledged, in its Chapter 11 filing, that it had more than 100,000 creditors, with debts totaling $6.75 billion. Kodak company also said that it had assets of $5.1 billion, with properties in Rochester, N.Y., Windsor, Colo. and Weatherford, Okla. Kodak's top creditor is the Bank of New York Mellon (BK, Fortune 500) in its role as trustee for other bondholders, with claims of more than $650 million. Other creditors include Sony, Nokia, WalMart, Target (TGT, Fortune 500), Best Buy (BBY, Fortune 500), Office Max, Disney Studios and CVS. Kodak has long struggled to evolve from film and compete in the digital age, even though it was an early pioneer of digital photography. For months, bankruptcy rumors have dogged the venerable company, which was founded by George Eastman in 1888. Kodak Files for Bankruptcy