Kodak have filed voluntary petitions for chapter 11 business reorganisation in the U.S. Bankruptcy Court, New York.
The company say all customer services and sales will continue and non-US subsidiaries are not included in the US filing and are not subject to court supervision. They also say wages and other employee benefits will still be paid. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.
In a statement, Kodak said: "Kodak has obtained a fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital. The credit facility is subject to Court approval and other conditions precedent. The Company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers 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.
After considering the advantages of chapter 11 at this time, the Board of Directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak.
Our goal is to maximise value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.
Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses.
The Board of Directors, the senior management team and I would like to underscore our appreciation for the hard work and loyalty of our employees. Kodak exemplifies a culture of collaboration and innovation. Our employees embody that culture and are essential to our future success.
Kodak expects to complete its U.S.-based restructuring during 2013.
You can find more information about Kodak's reorganisation plans and read the full press release here: Kodak Transforms