Kodak enters bankruptcy protection

Eastman Kodak has filed for Chapter 11 bankruptcy protection. The bankruptcy filing in the Southern District of New York does not involve Kodak’s international operations.

The company has reportedly begun discussions with banks over a new line of credit that would allow it to continue to trade while reorganizing its finances under Chapter 11 of the US bankruptcy code.

Last week Kodak announced it had realigned and simplified its business structure in an effort to cut costs, create shareholder value and accelerate its long-drawn-out digital transformation. Kodak has said it hopes the printer, software and packaging businesses will more than double in size by 2013 and account by then for 25 percent of its revenue, or nearly two billion US dollars.

Kodak said, 'As you have heard, Kodak and our U.S. subsidiaries have filed for Chapter 11 reorganization, but our European business is not affected by this and will operate as usual. We will continue to serve and meet the needs of all our customers and suppliers in Europe'.

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