Eastman Kodak files Chapter 11 bankruptcy
People visit the Kodak display at the International Consumer Electronics Show (CES) in Las Vegas earlier this month.
January 19th, 2012
05:53 AM ET

Eastman Kodak files Chapter 11 bankruptcy

Eastman Kodak Company filed for Chapter 11 bankruptcy protection in New York early Thursday.

Kodak listed total assets of $5.1 billion and debts of $6.75 billion in the filing in the southern district of New York.

Kodak 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 to operate during the bankruptcy process.

The company's shares, which had already dropped more than 90% in the past year, fell further this month after the Wall Street Journal reported that the company was preparing for a bankruptcy filing in case an attempt to sell a number of digital patents failed.

A day before that report Kodak disclosed that the New York Stock Exchange had warned that it could be delisted in six months if its struggling stock price does not recover. The warning was triggered by the fact that the stock's average closing price has been less than $1 per share for thirty consecutive trading days.

Earlier this month, Kodak announced it had streamlined its corporate structure as part of the ongoing effort to evolve from film to digital.

Kodak said the company is now structured into two divisions, the commercial segment and the consumer segment, as of Jan. 1. These segments will report to the newly created chief operating office, which is led by Philip Faraci and Laura Quatela.

The company was previously organized into three divisions, the graphic communications group, the consumer digital imaging group and the film, photofinishing and entertainment group.

Kodak was a relatively early pioneer in the field of digital photography, though it has been slow to leave behind its heavy reliance on outmoded film technology.

Polaroid puts Kodak's failures in focus

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Filed under: Business • Economy
soundoff (45 Responses)
  1. tutuvabene

    Hard to understand why they lagged in product development. It was a Kodak engineer that built the first digital camera in the mid-1970s. Yet, the concept was never developed beyond that. They had a second chance in the 1980's building expensive digital adaptors for Nikon SLRs and even came out with their own digital SLR but they never wholeheartedly pushed the concept. What were they thinking?

    January 19, 2012 at 8:25 am | Report abuse | Reply
  2. Scottish Mama

    I was waiting to have my 11 rolls of 35mm printed at Walgreens they said it would be half price in the next month. (it is $11.99 a roll) now were do I go? Wonder if I can but a developing machine that will be auctioned off?

    January 19, 2012 at 8:56 am | Report abuse | Reply
    • michele

      Scottish Mama

      You want to look for a lab that does C-41 processing. That is the name of the chemistry used for film processing. E-6 processing is for slide film. You should be able to find a lab that will deal with you via the mail. Try Adorama.com, they are very good.

      January 19, 2012 at 3:12 pm | Report abuse |
  3. Portland tony

    "So mama, please don't take my Kodachrome away "

    January 19, 2012 at 9:45 am | Report abuse | Reply
  4. Scottish Mama

    @Tony- LOL. My cannon I love it still. The new cameras are getting better, but not the sharpness and clarity of the ole cannon AE-1's.

    January 19, 2012 at 10:22 am | Report abuse | Reply
  5. TORI©

    Not me at 6:34am!

    January 19, 2012 at 11:18 am | Report abuse | Reply
  6. Andreas Moser

    Time to look at some beautiful photos, taken with Kodak: http://andreasmoser.wordpress.com/2011/12/04/valletta-capital-of-malta/

    January 19, 2012 at 11:29 am | Report abuse | Reply
  7. BOMBO ©

    Years ago, they could have gotten more heavily into high-end optics and/or specialty chemicals. They had previously dabbled in both, but dabbling isn't good enougfh when you need to diversify.

    January 19, 2012 at 12:21 pm | Report abuse | Reply
  8. BOMBO ©

    If I hang onto my Instamatic until I'm about 95 years old, it might actually be worth something. I think there's still a Flipflash in the box with about 5 bulbs to go.

    January 19, 2012 at 12:27 pm | Report abuse | Reply
  9. Henry Mayer

    KODAK will not be the last of the old line companies to go under.

    January 19, 2012 at 3:15 pm | Report abuse | Reply
  10. Jazzy

    I live in the city where Kodak started... Rochester NY
    This city only has two things going for it; University of Rochester/Strong Memorial and Xerox, which I live right down the road a piece from.
    Sad... But this city is SHOT!

    January 19, 2012 at 4:36 pm | Report abuse | Reply
  11. imaguard

    Headline: Kodak Files for Bankruptcy, Small Print: No Photo Available

    January 19, 2012 at 5:29 pm | Report abuse | Reply
  12. oldtimer

    Move out of Rochester....as fast as possible...

    January 19, 2012 at 7:45 pm | Report abuse | Reply
  13. Jazzy

    @ oldtimer, I intend to with in the year. Thanks ;)

    January 19, 2012 at 11:48 pm | Report abuse | Reply
  14. WOT

    China hit, again!

    January 20, 2012 at 2:12 am | Report abuse | Reply
  15. Linda

    Kodak will now be re-structuring. Great - I say "how about starting at the top where it's needed the most!"

    January 20, 2012 at 11:40 am | Report abuse | Reply
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