And Scene...Kodak Files For Chapter 11 Bankruptcy

Tyler Durden's picture

Headlines for now but the inevitable has become well 'evitable' as EK goes BK...headlines via Bloomberg:


We guess the 128% stock rally from 1/6 to 1/11 can be ignored now (and the Einhorn rumors)

Press Release:

Eastman Kodak Company and Its U.S. Subsidiaries Commence Voluntary Chapter 11 Business Reorganization


Flow of Goods and Services to Customers to Continue Globally in Ordinary Course


Non-U.S. Subsidiaries Are Not Included in U.S. Filing and Are Not Subject to Court Supervision


Company Secures $950 million in Debtor-in-Possession Financing in U.S.


Kodak’s Reorganization to Facilitate Emergence as Profitable and Sustainable Enterprise


Business Wire


ROCHESTER, N.Y. -- January 19, 2012


Eastman Kodak Company (“Kodak” or the “Company”) announced today that it and its U.S. subsidiaries filed voluntary petitions for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.


The business reorganization is intended to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines. The Company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75% of its revenue from digital businesses in 2011.


Kodak has obtained a fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital. The credit facility is subject to Court approval and other conditions precedent. The Company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.


Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.


“Kodak is taking a significant step toward enabling our enterprise to complete its transformation,” said Antonio M. Perez, Chairman and Chief Executive Officer. “At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.”


“After considering the advantages of chapter 11 at this time, 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,” Mr. Perez continued. “Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.


Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses.”


Mr. Perez concluded, “The Board of Directors, the senior management team and I would like to underscore our appreciation for the hard work and loyalty of our employees. Kodak exemplifies a culture of collaboration and innovation. Our employees embody that culture and are essential to our future success.”


Kodak has taken this step after preliminary discussions with key constituencies and intends to work toward a consensual reorganization in the best interests of its stakeholders. Kodak expects to complete its U.S.-based restructuring during 2013.


The Company and its Board of Directors are being advised by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. In addition, Dominic DiNapoli, Vice Chairman of FTI Consulting, will serve as Chief Restructuring Officer to support the management team as to restructuring matters during the chapter 11 case.


More information about Kodak’s Chapter 11 filing is available on the Internet at Information for suppliers and vendors is available at (800) 544-7009 or (585) 724-6100.


Kodak will be filing monthly operating reports with the Bankruptcy Court and also plans to post these monthly operating reports on the Investor Relations section of The Company will continue to file quarterly and annual reports with the Securities and Exchange Commission, which will also be available in the Investor Relations section of

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Talk about a Kodak moment.....

Cliff Claven Cheers's picture

Hey Sheep Fukker, I heard your types wear rubber boots and you put the sheep's back legs in your boots so they can't get away, is that true?

UP Forester's picture

I heard they bring 'em to the edge of a Cliff, first, so they push back....

JPM Hater001's picture

Everyone should hear this.  My uncle was in research and development high up in Kodak.  They dropped Pursuit of digital technology for the disc camera in the 80's.

The market does what the market does.

In 1981 I visited the Rochester Headquarters from IL before a summer trip to the finger lakes.  With 5 lines of code I locked up the entire research department.  Apple could repeat a line over and over until interrupted then resume normal command.  The IBM in their department didnt get the memo.  I entered the standard lines and boom.  Couldnt break in.  Next computer tried to access and break...boom...another one locked in the cycle...

It was one of my proudest days.

I brought Kodak Development to its 11.

To my uncle...thanks for the memory of a lifetime.

Cliff Claven Cheers's picture

I hear they put in front of an open oven that way they push back

jeff montanye's picture

for confirming detail see the film "night of the shooting stars".

Oh regional Indian's picture


Another 3,000 (or how many?) jobs lost in the US.


300 more underpaid jobs created in India.

Picking winners and losers in such scenarios is near impossible.



pan-the-ist's picture

We know that Bain Capital didn't have a hand in this, the workers are being compensated.

trav7777's picture

who would have thought 20 years ago that Kodak would be dead like this...fkin Kodak.  I mean seemed impossible.  Oh well.

jerry_theking_lawler's picture

i have a dumb, dumb, dumb question....does kodak still produce film that utilizes SILVER??

Stack Trace's picture

I wonder what iconic US manufacturing brand is up next for BK. BTW great story. I wrote a small .com executable for my Dad's small agency IBM x88 in 1983 that emulated Word Star in appearance but would display "User Error. Apologize before the computer explodes" whenever he pressed a key. He apologized and when he heard me laughing I was grounded from the computer. Old x88/x86 Assembler. Funny how a kid at 12 could find that stuff so much fun.  Never laughed so hard. Poor old man. His business went BK a few years later because of a recession and a wife that liked to give away company services for free. Cool thing: I had an intern (23) a few years back that still wrote x86 assembler in MASM.

A Nanny Moose's picture

Creative destruction bytchez!

Stack Trace's picture

Is something else supposed to appear after all the destruction?

Maybe a new social network like ZeroFace. We get to all share photos of our ugly mugs with large Junk This buttons next to them? I bet it could hit $1 Trillion market cap by next year just on QE6 rumors.

Or perhaps ZeroTrader where all the traders make bets on which backtested stock RobotTrader posts for the week as his home-run. (Not a bash on RobotTrader, he is pretty uhm, he is well, well his posts do provide levity).

If none of these sound like something GS would unload onto the market like the Groupon / Zynga abbomination then maybe:

ZeroSachs - The trading site that has a "Short Stopler" button on it with a bonus "Inverse Tilson ETF" round when you take your guaranteed winnings.

I picture a giant clown face with the button being the big red nose. The tongue would pop out and shoot out Bernie-Bux and then the teeth would light up for the bonus round. The clown would promptly spin around and yank his pants down to expose the Tilson play.

pan-the-ist's picture

Wouldn't ZeroSachs be setup where the the prop desk would datamine the positions of the users of the site so they could be front run - or perhaps bypass the prop desk entirelly and use the data to feed their HFT algorithsm?

Hey, why are all my trades being front run by Goldman?

That might be too obvious.

DaveyJones's picture

more like a polaroid moment

Ruffcut's picture

Every once in a while a biz needs to go the way of the blacksmith.

I remember when I was a kid,(long ago) and my mum threw her kodak camera up against the wall. Now, that was a precious kodak moment. Some memories don't need no stinkin photo.

prains's picture

the click heard around the world

DarthVaderMentor's picture

Another American icon of business bites the dust.

Arkadaba's picture

Kodak was a great company in its day. But they have been hanging by a thread for years now. They didn't adapt to new technology and because of that they are going down. And that is how capitalism is supposed to work, no?

pan-the-ist's picture

Exactly. Kodak could have adapted, but its board probably felt it was more strategic to let it starve in R&D because the workers were probably well paid.  Now the "non strategic" R&D can be sold for pennies to the other companies that the members of the board sit on, and Kodak can keep the strategic tech for instant exposing of analog photos.

Capitalism at work.

DaveyJones's picture

1932 - The first 8 mm amateur motion-picture film, cameras, and projectors were introduced. ? Tennessee Eastman began production of its first plastic - EASTMAN TENITE Acetate. ? George Eastman died, leaving his entire residual estate to the University of Rochester. In 1949, his Rochester home was opened as an independent public museum - The International Museum of Photography at George Eastman House.

My grandfather bought one of these and took 8mms of my mother as an infant in Portland in 1943. He also took some great footage of wartime efforts in the area,  logging - two guys cutting down huge trees with just a large hand blade, victory gardens etc. We were able to save the footage and digitize it.

They were a great company..for their day, swallowed by the digital era. Was just looking at their history on their site. Neat stuff.

whisperin's picture

A company many of us grew up with. The end of an era.

hedgeless_horseman's picture



Still can't get the full effect on the monitor, but here is a sample of what we will miss...

KK Tipton's picture

A sad day. But what can ya do.
Now...if ya want to fake it into the future, this is all we got:

Alien Skin Software: Exposure 3 -

"Over 500 analog techniques and organic looks are back like cross processing, Polaroid and vintage Daguerreotype. There is careful research under the hood, but the controls are simple so you can focus on the creative choices. The result is a photo that looks like it was made by a human, not a computer."

This Photoshop plugin is pretty fantastic. It can do old and new Kodachrome looks.
The black and white film "emulations" are really great.
You can get scarily close to the Helmut Newton thing with some of the stock presets (Kodak Tri-X?).
Kodak Technical Pan (low contrast setting) is cool. And the Kodak Plus-X and Agfa Scala 200 presets also.

What ya gonna do eh?

But ya still need the eye:
helmut-newton-nadja-auermann.jpg -
helmut_newton_brigitta  -

That part can't be bankrupted.


ebworthen's picture

Wow, great pic and link, thanks.

The color and clarity just pop; wonder what the camera and lens were?

You have a point, hard to get this from digital (that is - if it makes it off the hard drive or cloud).

way-out-west's picture

Really kinda sad - But I couldn't help it....


Kodachrome Bitches.

Hephasteus's picture

They probably got sony online pictures wrapping up every outstanding project and getting ready to bankruptcy sale.

YesWeKahn's picture

How many idiots got sucked into the recovery?

cbxer55's picture

Surprised "Bathtub" Buffett didn't cough up a few billion.

AgShaman's picture

I think he pledged his Silber to the SLV etf years ago....

....he ain't gots no more

Caviar Emptor's picture

Momma gonna take my Kodachrome away

Paul Simon - Kodachrome

BlackholeDivestment's picture

...a buy (sell the news spike or the parts) moment for Kodak.

qussl3's picture


Had a relative who worked for them, relatively senior exec, jumped ship a few years back.

The company was being stripped from within, damn sad.

toomanyfakeconservatives's picture

One week stock surge in November? Timing is everything...

yogibear's picture

A kodak moment. Another American icon bites the dust.

gwar5's picture

Never saw digital photography coming. Horse and buggy graveyard. They sure got plenty of my money on 110 and 35 mm film, and I hated paying to get them all developed and he running around.  Technology, saving boodles.

Bye Bye Kodak. I will take a picture of one of your signs hanging on the windows at the pharmacy, so I won't forget. 

Theta_Burn's picture

ICONS dropping like flies.

Tech didn't doom them, lack of vision did


Caviar Emptor's picture

Kodak dies while Fujifilm is ok: another lesson learned. Fuji created a joint venture with Xerox and bought US medical imaging companies to diversify. It also innovated in-house. 

Manthong's picture

Hmm.. misguided steep, short rally ending abruptly in a huge bust.

S&P deserves its Kodak Moment, too.


UP Forester's picture

Things that go bump in the night.

At least they haven't been on the Dow for a long time.

Anybody remember 2004?

ForTheWorld's picture

It's good to see that if you go bankrupt, you can just keep on keeping on with another $1 billion loan - oh sorry, credit facility. How do consumers get in on this?

JW n FL's picture



after years and years of the company being stripped of assets!

the time has come when nothing of value is left!


Americana' at it's finest!

zebra's picture

US government to business:

if u r a manufacturer, then you die (except car makers)

if u r a banksters, welcome!

if u r a .com buddy, welcome!

no more manufacture in USA.