Kodak Files for Chapter 11 Bankruptcy

January 20, 2012, By Sanjeev Ramachandran

It is not a good time for Kodak. They have been troubled with their falling sales. Now their ability to stay in the business has come up into question.

The veteran in photography finally came out of its shell and filed for chapter 11 bankruptcy. The company in its prime were on high ground with products like Kodachrome photographic film and Instamatic cameras.

But in this age of digital technologies, printed photos will soon be a thing of the past. Digital technology is now on the way to dominate smartphones as well as cameras.

Kodak has been facing stiff competition from abroad as well as problems with it’s diminishing customer base. It has watched its condition worsen over the years, and the New York Governor, Andrew Cuomo echoed the same in a statement, saying that the reorganization “is difficult and disappointing news” for the company’s base of operations, Rochester.

Kodak has a 132-year old history, and in people’s eyes  continue to be the most recognizable in the world.

The company hopes to continue its operation through the restructuring with the help of an 18-month, $950-million credit facility from Citigroup. According to Chief Executive Antonio M. Perez, the Chapter 11 filing is a “necessary step and the right thing to do for the future of Kodak,”.

He also added that the reorganization might be ready to wrap up in 2013. After 2003, about 47,000 workers were laid off and 13 manufacturing plants and 130 processing labs were closed down.

Last year, the company’s digital and printing technologies accounted for 75% of its revenue. Executives hope that it would continue to provide for future profitability.

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