Local Law Firms Home > Bankruptcy & Foreclosure News > Judge Allows Kodak to Escape Bankruptcy
Popular photography company Eastman Kodak has received approval to leave bankruptcy. Kodak had recently filed for chapter 11 bankruptcy after continuous major falls in profits. While it was not terribly surprising from a financial standpoint, the news had shocked many. Reasonably so considering it’s major international popularity in the last twenty years. Within that time, Kodak’s market value had reached and exceeded $31 billion. However, their value had slipped down to $13 billion before finally plummeting as low as $6 billion within the last two years.
While in bankruptcy, Kodak tried to sell off it’s portfolio of 1,100 patents for a reported two billion dollars but wasn’t as successful as it hoped. Instead, the portfolio sold for only $525 million. Analysts say that this may be the main reason Kodak has needed to recreate and re-establish themselves.
The judge has allowed Kodak to escape oversight from the court so that the company may focus on becoming a much smaller company. As it stands, Kodak will shift its focus away from photo printing, building cameras, and consumer electronics to catering to commercial needs. The company will create as one analyst says “…equipment that will allow you to print labels that might go on… a juice bottle or something like that”. Though escaping bankruptcy, repercussions remain for former employees. Many retired former Kodak employees may lose their retirement benefits. Former employees will also lose health care benefits. The new company will also see a major decrease in employees from what was once some 65,000 employed workers to a smaller team of about 2,000 workers.
Still, the new plan to escape bankruptcy could lead Kodak in the right direction. Analyst say that if well strategized, Kodak could go on to becoming a successful company again.
Bankruptcy can be a daunting experience for anyone involved. Be it a large company or a small business owner. The effects of bankruptcy could seem insurmountable and inescapable but there could be options.
Did you know? Our lawyers can sometimes help escape bankruptcy under the right circumstances and help explore any available options that could work for you business.
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