Kodak Reinvents Itself As Judge Approves Bankruptcy Exit | WAMU 88.5 - American University Radio

Kodak Reinvents Itself As Judge Approves Bankruptcy Exit

Play associated audio

U.S. Bankruptcy Judge Allan Gropper has approved Kodak's plan to emerge from court oversight. That paves the way for it to be a much smaller company focused on commercial and packaging printing.

The plan received the judge's approval on Tuesday, and the company hopes to put it into effect as soon as Sept. 3, reports Kate O'Connell of member station WXXI in Rochester, N.Y.

Most of the old Kodak is gone, including the camera-making business. It was unable to keep up with the switch from film to digital technology.

These days, attention seems to be focused on cellphone cameras.

Kodak filed for bankruptcy protection last year after struggling with increasing competition and growing debt.

Since its filing, Kodak has sold off many of its businesses and patents while shutting down the camera manufacturing unit that first made it famous.

George Conboy, an analyst with Brighton Securities, tells NPR's Laura Sydell that the company's business plan submitted to the court does not include consumer photos.

"What Kodak makes now is equipment that will allow you to print labels that might go on, say, a juice bottle or something like that," he says.

In 2003, Kodak's revenue was more than $13 billion, but by 2011, it was down to $6 billion.

The court-approved plan affects creditors, retirees and shareholders.

"Existing stock would all be canceled out, and a whole new generation of shareholders, primarily a number of large financial institutions, would be the new owners of Kodak," says reporter Matt Daneman of the Democrat and Chronicle in Rochester.

Gropper says creditors will get about 4 cents on the dollar. Many former workers will lose retirement and health care benefits.

Kodak once employed 65,000 people in Rochester. Its new business will employ about 2,000 people.

The Associated Press reports that the U.S. Trustee filed an objection with the court challenging the legality of hefty cash and stock bonuses that Kodak executives are expected to receive when the company exits from bankruptcy protection.

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

The Ol' Puzzle Switcheroo

Every answer is a made-up two-word phrase, where the second and third letters of the first word are switched to get the second word.
NPR

College Life Doesn't Have To Mean Crummy Cuisine, Says Dorm Room Chef

Sick of dining hall pizza, public health student Emily Hu taught herself how to cook — even with no oven. Now she's hoping to inspire her peers to pick up cooking skills and healthier eating habits.
NPR

Democrat Seeks Limits On Operations Against ISIS

Rep. Adam Schiff of California plans to introduce a bill that would authorize military operations against ISIS. NPR's Rachel Martin talks to Rep. Schiff about the new legislation.
NPR

In Sweden, Remote-Control Airport Is A Reality

Sweden is the first country in the world to use new technology to land passenger airplanes remotely. At an airport in a tiny town, flights are guided by operators sitting miles away.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.