Despite the recent parade of lawsuits against Apple, Samsang and HTC over digital imaging patent infringements, the Eastman Kodak Company has filed for Chapter 11 reorganization in New York today.
The move, which has been expected for some time, underscores the inability of this innovative photography giant to make a successful transition into a digital imaging company.
Kodak said it hopes to emerge from bankruptcy in 2013 as a "lean, world-class, digital imaging and materials science company", according to Chairman and CEO Antonio Perez. The company will be conducting business during the restructuring using $950 million of debtor-in-possession financing from Citigroup.
"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." said CEO Antonio Perez in an official press release.
I found the news to be particularly sad having grown up in Rochester, NY, with several members of my family employed for years by Eastman Kodak back in the day. I can only hope this iconic brand will ultimately emerge as a stronger player in digital imaging after restructuring its business.
"Kodak is taking a significant step toward enabling our enterprise to complete its transformation," said Antonio M. Perez.
Kodak has already shuttered 13 manufacturing plants, 130 processing labs, and cut some 47,000 workers from its payroll since 2003 in an effort to exit traditional operations that proved unprofitable.
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