Eastman Kodak, once the biggest name in photography, has gained court approval to come out of bankruptcy.
After filing for chapter 11 bankruptcy back in January 2012, Kodak has emerged with a plan to save the more than 100 year old company. US judge Allan Grooper agreed to the companies plan, approving cuts of $4.1 billion in debt, and with this it should be back to trading in about two weeks.
However don’t get your hopes up and expect a surge of Kodak film anytime soon. With the company being able to rise out of the ashes, it rises in a new form. Kodak shall from now on conduct zero business directly with consumers, instead the once great camera giant will emerge as a commercial printing company. In addition to which Kodak will continue to manufacture touch-screen components for smart phones and computer tablets as well as producing cine film for the movie industry.
On the financial side, creditors will only expect to get back 5% of the money they are owed, with shareholders getting nothing.
Kodak’s legal representative Andrew Dietderich told the court “Kodak is a different company than the one in the popular imagination and very different from the one that filed for bankruptcy”. With all negatives aside Kodak is doing its best to stay in high hopes saying that the corporation will again “be a leader in its chosen field’.
— Loren Stuart