Kodak final shot?
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MARK AMIES
funnier than Les Dennis
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A long rumbling story , that has come to a head. Twitter is alive with the news. Very sad day for Photography and of course Kodak.
I doubt very much if it the end of the name , or the products.
I doubt very much if it the end of the name , or the products.
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I just received the following email from Ag Photographic which may make things clearer.
Business as Usual
By now most customers will have heard that Eastman Kodak has filed for Chapter 11 Bankruptcy Protection in the USA. We want to explain to customers that, despite emotive media reports, this does not mean the company ceases to exist - Kodak continues to trade as normal, the only difference being that much of their liabilities, they are now protected from.
In our view this is a good move for Kodak because:
1. It means they can re-organise the company without the threat of the liabilities that have hung over the business in recent years;
2. They can re-finance the company. By making the move into bankruptcy protection they have been able to secure $950m of funding from Citibank
3. For a number of years it has seemed top management in the company have been obsessed with Wall Street and the share price of the company. In our opinion this has been a hinderance to the effective management of the business. Now the company is de-listed from the NYSE, they don't have to concern themselves with Wall Street and can take decisions freely.
4. It is expected the company will remain in Chapter 11 for around 12 months, at the end of which a new Kodak will emerge.
At Ag Photographic we will continue to sell traditional Kodak products as usual. We hope this helps explain the situation to customers.
Business as Usual
By now most customers will have heard that Eastman Kodak has filed for Chapter 11 Bankruptcy Protection in the USA. We want to explain to customers that, despite emotive media reports, this does not mean the company ceases to exist - Kodak continues to trade as normal, the only difference being that much of their liabilities, they are now protected from.
In our view this is a good move for Kodak because:
1. It means they can re-organise the company without the threat of the liabilities that have hung over the business in recent years;
2. They can re-finance the company. By making the move into bankruptcy protection they have been able to secure $950m of funding from Citibank
3. For a number of years it has seemed top management in the company have been obsessed with Wall Street and the share price of the company. In our opinion this has been a hinderance to the effective management of the business. Now the company is de-listed from the NYSE, they don't have to concern themselves with Wall Street and can take decisions freely.
4. It is expected the company will remain in Chapter 11 for around 12 months, at the end of which a new Kodak will emerge.
At Ag Photographic we will continue to sell traditional Kodak products as usual. We hope this helps explain the situation to customers.
Got the email from AG too and was cheered by it. I thought that the way things were going would mean no Kodak stuff available anymore. I suppose that there must be parts of the business that make enough money that they won't disappear though and I'm keeping my fingers crossed that the Tri-X production line is one of them!
That's how Chapter 11 works. Kodak have been given a breathing space. There are a number of criteria, but it can refinance and try to trade its way back into profit/viability. It's not out of the woods yet.
It's also available to individuals, but they normally file under Chapter 7 or 13.
It's also available to individuals, but they normally file under Chapter 7 or 13.