Kodak Gains Court Approval for Bankruptcy Plan
ROCHESTER, NY—The Kodak Moment is over, at least from a consumer point of view. Eastman Kodak has received bankruptcy court approval for its reorganization plan, which slices away roughly $4.1 billion of debt and recasts the firm as one that serves businesses only.
Under the plan, according to Bloomberg, secured claims will be paid in full under the plan, while shareholders will receive nothing. Unsecured creditors, with estimated claims of about $2.2 billion, will be paid four to five cents on the dollar. Kodak termed the plan a "comprehensive compromise" between the company and its creditors.
Kodak entered bankruptcy protection with around 17,000 employees and will exit with 8,500. From 2003 until its January 2012 Chapter 11 filing, Kodak shed 47,000 employees and closed 13 factories that made film, paper and chemicals. Also gone are 130 photo labs.
According to the plan, Kodak will now focus on touchscreen sensor components for smartphones and computer tablets. It will continue to produce film for the movie industry and, of course, it will continue to serve the commercial printing industry with digital presses and related technologies.