Once-dominant Eastman Kodak Co and its US subsidiaries hit by decline of photographic film business in digital era
Kodak has filed for bankruptcy and announced it will embark on a restructuring programme to try and save the company.
Kodak has filed for bankruptcy in a bid to survive a liquidity crisis after years of falling sales related to the decline of its namesake film business as digital cameras have taken over the market.
Eastman Kodak Co, the photographic film pioneer, which had tried to restructure to become a seller of consumer products like cameras, said it had also obtained a $950m, 18-month credit facility from Citigroup to keep it going.
“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,” chairman and chief executive Antonio M Perez said on Thursday.
Kodak and its US subsidiaries had filed for Chapter 11 business reorganisation in the US bankruptcy court for the southern district of New York, the company said.
Non-US subsidiaries were not covered by the filing, it said.
Kodak had been under pressure ever since September when it drew cash from a credit line, tipping investors off to liquidity issues.
Kodak’s management and board were briefed last Friday about the company’s efforts to secure bankruptcy financing.
The company is struggling to sell a portfolio of patents that would help bolster its cash position.
On Wednesday Kodak said it had filed a lawsuit against Samsung alleging infringement of certain patents related to Kodak digital imaging technology.