News / Economy

Kodak Emerges from Bankruptcy

An example of what a piece of silicon looks like with Kodak print inhibiting ink at Kodak research labs in Rochester, New York,  Aug. 28, 2013.
An example of what a piece of silicon looks like with Kodak print inhibiting ink at Kodak research labs in Rochester, New York, Aug. 28, 2013.
Reuters
Eastman Kodak Co, the photography pioneer which invented the digital camera, emerged from Chapter 11 bankruptcy protection on Tuesday, with plans to continue as a smaller digital imaging company.
 
The new Kodak will focus on commercial products such as high-speed digital printing technology and printing on flexible packaging for consumer goods.
 
“You can't imagine how much I have been waiting for this moment ... This is a totally new company,” Chief Executive Antonio Perez told reporters.
 
Kodak, founded in 1880 by George Eastman, was for years synonymous with household cameras and family snapshots. It filed a $6.75 billion bankruptcy in January 2012, weighed down by high pension costs and a years-long delay in embracing digital camera technology.
 
The new company expects to have $2.5 billion in revenue this year, Perez said.
 
Kodak once employed more than 60,000 people and was one of the largest employers in Rochester, New York, where it is based. Perez told reporters his most difficult task at the helm of the bankrupt company was dealing with hefty pension costs.
 
“I would not recommend anyone to file for Chapter 11, but if you have to deal with legacy costs, in my opinion, that's the only way you can do it,” Perez said.
 
The company in April resolved a crucial dispute with its British pension fund, which dropped a $2.8 billion claim against Kodak. The fund also bought the company's personalized imaging and document imaging businesses, to be named Kodak Alaris, for $650 million.
 
The company said it has repaid its debtor-in-possession lenders and will receive about $406 million in new financing.
 
Perez, in charge since 2005, had been trying to steer the company towards consumer and commercial printers but was unable to stem the cash drain. The company has not posted an annual profit since 2007.
 
Chief executives are commonly ousted through the bankruptcy process, but Perez remains top boss at Kodak, a result he attributed to his ability to do “what I needed to do” during the restructuring.
 
“When I came here, the previous board ... gave me three tasks - restructure the film business, create a completely new company that would have a future, and ... eliminate or settle the very large legacy costs that we had from the old company,” Perez said.
 
Kodak had hoped to fetch more than $2 billion through its bankruptcy process for about 1,100 patents related to digital imaging, but drew only $525 million for the portfolio, which experts said was a crucial reason it had to sell core businesses and reinvent itself.
 
“We're not the largest competitor in the market, but we're offering the biggest differentiation in the market,” Perez said.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.