Kodak to Exit Bankruptcy As Commercial Printing Company

Kodak to Exit Bankruptcy As Commercial Printing Company

A plan which cuts about $4.1 billion of debt for Eastman Kodak was approved by US bankruptcy judge Allan Gropper yesterday. The plan allows Kodak to reorganize itself into a company that will actually provide no consumer products but will instead focus on printing technology for corporate customers. This is good news for the company on the whole by saving it from extinction, but it does nothing to compensate shareholders. Only secured claims will be paid in full. Unsecured creditors will take a huge hit at 4-5 cents on the dollar but again, shareholders like you or I are completely out of luck.

The plan hinges on Kodak being able to sell $406million in stock. That's 85% of the company's equity which is being backstopped by a large group of creditors. This reorganization plan will shift focus to touchscreen sensor technologies and motion picture film production.

Via Bloomberg

Now that you have a link to the original article, and since I'm not one of those impartial, objective writers allow me to share the piece of this that confuses me.

I'm no financial guru and it's possible that I'm not fully understanding a specific detail. If that's the case, please feel free to write in and educate me. I'm happy to learn.

Kodak died and in it's death every individual that invested in it's stock has nothing to show for it. We all understand that is the risk, no problem. However, now they are saying that if you invest again they are sure they can be successful again. Their goal is to refocus on touch-screen technology and to continue making film for the motion picture industry. That's right, the very same company that invented the digital camera and then couldn't do anything with it is going to succeed by holding fast to another medium with limited life. I don't see the brilliance here. Your company is struggling to survive...Why spend anything on a medium that is (as before) going to be totally obsolete soon?

However, if you believe they can pull themselves back from death this is your chance. Eastman Kodak stock is currently at $0.06

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9 Comments

Martin Melnick's picture

I disagree with this interpretation. They did do things with their "digital camera." They own patents and still make technology for sensors in many of the high end still and motion picture digital cameras today. They never got out of that game, they merely forced themselves to contribute rather than compete. Personally, I'm excited to hear that they may continue making film. With Fujifilm also gone, it means the motion picture film medium isn't entirely dead.

I'm happy to hear that film as an acquisition medium will continue to exist for now, it looks wonderful, however film as a distribution medium has no future.

i read an article way back in 2009 that apparently Kodak was the first camera manufacturer to develop digital sensors but what resulted them today was the period they introduced these digital sensors. The market isn't ready to accept it and customers wouldn't trust digital because they are too comfortable with their films. I guess they had the brains and innovations but just the timing wasn't right for them.

Hate to sound lost in this subject, but does will this affect in anyway the making of Kodak CCD sensors? I'm asking because I'm waiting for the release of a Pentax and chances are this will affect it.

"[Kodak] will actually provide no consumer products"

Am I the only one who reads this as "Kodak will actually no longer produce consumer photographic film"?

Truly saddened by this.

Shannon Wimberly's picture

i work in the printing industry, technology has advanced over my career to the point where i do believe the day is approaching where we will not need printing on paper as a medium for information dissemination, or at least very few reasons for it, we all see it unfolding before our eyes..... In the plant i work, we have a Kodak CPC (computer to plate) unit, which is a device that takes a digital file and burns the print image directly to the metal plate used in the printing process. If this is what this article is referring to where Kodak is throwing all its eggs in the basket, i agree, in the long term, is printing on paper an industry in the growth phase? or in the decline?

I have heard one argument made in favor of companies that provide products and services to newspapers and [large scale] printers. Paper still is, and will be for quite some time, the cheapest way to deliver content to less technological countries. Much of the world simply does not have the electrical, cell tower, broadband, or market infrastructure, let alone the disposable income for everyone to have an ipad yet.

Obviously this is not a long-term strategy for profit and glory, but at the rate the world is changing - do you really know with 100% certainty that Dell, IBM, Boeing, or [pick major player] will still be around in five years?

Shannon Wimberly's picture

good point..

Fritz John Asuro's picture

This is totally out of topic but... I thought,at first glance, the image above was the "Colosseum".