This is not the Kodak moment you would hope for. Eastman Kodak Company and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.
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, says the company, and adds that Kodak has sufficient liquidity to operate its business during the chapter 11 process, and to continue the flow of goods and services to its customers in the ordinary course.
Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course, says the company.
Antonio M. Perez (Chairman and CEO, Kodak): 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.
Kodak expects to complete its U.S.-based restructuring during 2013. The company and its Board are being advised by Lazard, FTI Consulting and Sullivan & Cromwell. In addition, Dominic DiNapoli, vice chairman of FTI Consulting will serve as chief restructuring officer.