Kodak Details Restructuring Progress; Will ‘Wind Down’ Consumer Inkjet Printer Sales
ROCHESTER, NY—Sept. 28, 2012—Eastman Kodak will highlight its restructuring accomplishments to date in a motion it plans to submit today to the Bankruptcy Court to extend until Feb. 28, 2013, its exclusive right to file a plan of reorganization. The extension will assist the company as it continues its progress toward successful emergence in the first half of 2013.
In its motion, Kodak describes the substantial progress it has made toward reorganization goals since filing for Chapter 11 on Jan 19, 2012. Kodak’s case is large and complex, involving some $5 billion in assets, global operations, thousands of contracts and leases, thousands of potential creditors, and ongoing asset sales. Kodak’s progress includes the successful stabilization of its business, the development of its emergence plan, significant operating improvements, the expansion of customer and vendor relationships, and substantial cost reductions.
Kodak previously announced its intention to emerge as a company focused on commercial, packaging and functional printing solutions and enterprise services, as well as processes to sell its Personalized Imaging and Document Imaging businesses. Consistent with that emergence strategy, Kodak has continued to manage its consumer inkjet business for profitability, and the company announced today that, starting in 2013, it will focus that business on the sale of ink to its installed base and wind down sales of consumer inkjet printers.
“Kodak is making good progress toward emergence from Chapter 11, taking significant actions to reorganize our core ongoing businesses, reduce costs, sell assets, and streamline our organizational structure,” said Antonio M. Perez, Kodak chairman and CEO. “Steps such as the sale of Personalized Imaging and Document Imaging, and the Consumer Inkjet decision, will substantially advance the transformation of our business to focus on commercial, packaging & functional printing solutions and enterprise services. As we complete the other key objectives of our restructuring in the weeks ahead, we will be well positioned to emerge successfully in 2013.”