Kodak to focus on packaging in emergence from Chapter 11

- Reshaped Kodak to focus on long-term growth prospects

 

- On course to emerge from Chapter 11 in 2013

 

Eastman Kodak Company will focus on package printing as it moves forward with its corporate re-organization after filing for Chapter 11 bankruptcy protection earlier this year.

 

In January, the company and its US subsidiaries filed voluntary petitions for Chapter 11 business re-organization in the US Bankruptcy Court for the Southern District of New York.

 

Chapter 11 is a chapter of the United States Bankruptcy Code, which permits re-organization under US bankruptcy laws. In Chapter 11, in most instances the debtor remains in control of its business operations as a debtor-in-possession, and is subject to the oversight and jurisdiction of the court.

 

Kodak has now outlined its next steps in emerging from Chapter 11 re-organization, which will make it a company focused on commercial, packaging and functional printing solutions and enterprise services.

 

As such, the company has initiated sale processes for its personalized imaging and document imaging businesses.

 

Kodak said it believes that the sale of these assets, as well as continued cost reduction initiatives, curtailment of its legacy liabilities and the monetization of the company’s digital imaging patent portfolio, will be significant milestones toward completing the company’s re-organization and emergence from Chapter 11 during 2013.

 

Speaking during Drupa, chairman and chief executive officer Antonio Perez outlined packaging’s role as part of the company’s future strategy, saying: ‘There are many opportunities in packaging. Packaging gives me a buzz for the future as the opportunities are enormous.’

 

Commenting on the recent developments, Perez (pictured, top) said: ‘The initiation of a process to sell the personalized imaging and document imaging businesses is an important step in our company’s re-organization to focus our business on the commercial markets and enable Kodak to accelerate its momentum toward emergence.

 

‘In addition, we continue our initiatives to reduce our cost structure and streamline our operating models in an effort to return the company to profitability.

 

‘We are reshaping Kodak. We continue to rebalance our company toward commercial, packaging and functional printing – in which we have the broadest portfolio solutions – and enterprise services. These businesses have substantial long-term growth prospects worldwide and are core to the future of Kodak.

 

‘We are confident that our competitive advantages in materials science and deposition technologies, as well as our know-how in digital imaging, will enable us to capitalize on those opportunities and extend our leadership in key growth markets.’

 

Perez added: ‘As we move forward with the Chapter 11 process, we are focused on delivering the highest value to our creditors so that we can emerge as a sustainable, profitable company that continues to meet the needs of our customers.’

 

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