Photographic film pioneer Eastman Kodak files for bankruptcy protection
19 Jan 2012
Eastman Kodak, iconic photographic film pioneer, which invented the roll film way back in 1885, today filed for bankruptcy protection as the 131 year-old company was a decade late in making a transition to the digital age.
The Rochester, New York-based company that was founded by George Eastman in 1880, filed for protection under Chapter 11 in the US Bankruptcy Court for the Southern District of New York, a move that will allow it to reorganise its US operations by 2013.
Kodak, which introduced its $1 Brownie box type Camera more than a century ago, said in its bankruptcy petition, that it has assets worth $5.1 billion and debt of $6.75 billion.
Kodak's creditors include The Bank of New York Mellon, which is owed $668 million, Sony Studios, with $16.7 million, Warner Brothers, with $14.2 million, and Alcoa Inc., with $2.8 million.
Kodak has also obtained a $950 million, 18-month 'debtor-in possession financing'' from Citigroup to keep itself afloat during bankruptcy proceedings.
"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 CEO, Antonio Perez said in a statement.