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

Comic-Con Fans Continue The Epic Battle Between Science And Fiction

Fans of science fiction have long wrestled with the question of just how much science should be in their fiction. Advocates of different approaches met at San Diego's Comic-Con.
NPR

Scraped, Splattered — But Silent No More. Finally, The Dinner Plate Gets Its Say

Instagram is the Internet's semi-obsessive, borderline-creepy love letter to food. But behind every great meal is a plate doing a pretty-OK job. So a comedian made an Instagram to celebrate plates.
NPR

Barbershop: Democrats Talk Core Values In Philadelphia

Democrats Malcolm Kenyatta, who is a Clinton delegate, social worker Amy Hoag, and Gary Frazier of Black Men for Bernie are in Philadelphia for the DNC. They discuss challenges facing the party.
NPR

Making The Cloud Green: Tech Firms Push For Renewable Energy Sources

Few people can demand what kind of electricity they get. But Microsoft and Facebook, which operate huge, power-hungry data centers, are trying to green up the electricity grid with their buying power.

Leave a Comment

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