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Eastman Kodak Co. has submitted for bankruptcy protection

Eastman Kodak Co. has submitted for bankruptcy protection

by on 01-21-2012 11:15PM in Industry News

 

Eastman Kodak Co, the photographs legend which created the hand-held photographic camera, has submitted for bankruptcy protection and plans to reduce in size a lot, capping a extented plunge for one of The united state's best-known companies. 
The Chapter 11 processing makes Kodak one of the largest business casualties of the digital era, after it failed to adopt innovative technologies like the digital camera.(Invented by Kodak). The bankruptcy may give Kodak the capability to find buyers for some of its 1,100 patents, a important part of company's value. Today Kodak employs 17,000 people globally, down from 63,900 just 9 years ago. 
"It is a extremely sad day even although we had expected it," said Shannon Cross, an analyst at Cross Research who has had a "sell" rating on the company since 2001. "If it emerges, it will be a much smaller entity."
In accordance with documents submitted to the U.S. bankruptcy court in Manhattan, Kodak had about $5.1 billion of assets and $6.75 billion of liabilities at the end of September. In court papers, Chief Financial Officer Antoinette McCorvey said, without elaborating, that Kodak plans to sell "significant assets" during the bankruptcy. Kodak needs to complete its U.S. restructuring in 2013. Non-U.S. units are not part of the Chapter 11 case.
"This is a essential step and the right thing to do for the future of Kodak," Chairman and Chief Executive Antonio Perez said in a statement on Thursday.
Kodak's market value has sunk below $100 million from $31 billion 15 years ago, when its share price topped $94.The shares began trading on Thursday on the Pink Sheets , and closed down 6 cents at 30 cents.


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