Login

Kodak's plan to escape bankruptcy gets court approval

Kodak (STOCK)

Struggling photography company Kodak has made another step towards exiting Chapter 11 bankruptcy. Today, a New York judge approved a plan to emerge from bankruptcy, reducing its debt by $4.1 billion. Earlier this year, a court approved $844 million in financing for Kodak, and the company sold a hefty patent portfolio for over $500 million in 2012. As Kodak exits bankruptcy, it's offering creditors a much-reduced repayment on $2.2 billion in debt; to help finance its recovery, it also needs to sell $406 million in stock.

As part of its reorganization, Kodak has backed away from consumer products, ending its production of once-ubiquitous digital cameras and somewhat less ubiquitous home inkjet printers. Instead, it will focus on selling commercial printing tools, creating a core business that can operate on lean funding and a far smaller set of employees — Kodak has already gone through several rounds of mass layoffs.

Judge Allan Gropper, who approved the plan, was sympathetic to Kodak and its plight, seeing it as a symbol of larger problems with the national economy. "Kodak is one of the best-known names of American business," Bloomberg quotes him as saying. "Its decline in bankruptcy is a tragedy of American economic life. I've reviewed dozens of letters from Kodak shareholders asking how the company in which they invested fell so far."

The Verge
X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new Verge username and password

As part of the new Verge launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to Verge going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new Verge username and password

As part of the new Verge launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to Verge going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.
Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.