Kodak Files for Bankruptcy

It is inevitable. Kodak, the company that invented the hand-held camera, has filed for bankruptcy protection. The 130-year-old company, which pioneered the film imaging technology before becoming a seller of imaging-related consumer products, has also obtained a $950 million 18-month credit facility from Citigroup to keep it afloat.

The Chapter 11 business reorganization, which was filed in the U.S. Bankruptcy Court for the Southern District of New York, covers Kodak and all its subsidiaries based in the United States. All Kodak offices outside the U.S. were not covered by the filing.

In a statement, Chairman and CEO Antonio M. Perez said that the act is a “necessary step and the right thing to do for the future of Kodak.”

This event reflects how Kodak missed an opportunity to embrace modern technology. The company invented the digital camera, but never developed the technology further. It also could not adapt to the decreasing demand for film, which prompted the company to undergo several restructures until in 2007 when Perez steered Kodak to selling consumer and commercial printers. However, Kodak could not stop its losing profitability as it has been seeing red since 2007.

The bankruptcy protection would enable Kodak to continues its work on maximizing the value of its technology assets, including its vast digital-imaging patents. While it has provided licenses to various imaging companies, Kodak has recently sued the likes of Apple, HTC, and Samsung for copyright infringement.

Source: Interaksyon

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