Kodak Files for Bankruptcy Protection
Submitted by Peter Cioni on Thu, 01/19/2012 - 16:20
Pretty amazing that it finally happened. I think what's most chilling is the last paragraph of this article in the Wall Street Journal: it will be up to the creditors to decide whether they can raise more money (to pay themselves back) by a) simply liquidating the business entirely or b) helping Kodak get back on its feet as a leaner / meaner company.
Creditors will have to decide whether the printer operations are worth supporting, or whether the bulk of the company's value is in its patents. Nortel Networks, a company that also had fallen behind the technology curve, opted to liquidate itself in bankruptcy court rather than reorganize, raising a greater than expected $4.5 billion for its patent trove.
Kodak's CEO believes that a restructured Kodak will be one that generates revenue by selling commercial + consumer ink jet printers.
While Kodak filed for Chapter 11 bankruptcy protection (with the implication that they will re-emerge from bankruptcy as a healthier organization) it's those with the largest outstanding debts who will influence the next steps of the company.
