The original imaging giant has filed for bankruptcy. Critics call it due to digital photography segment, markets are plummeting and share value dropping- seems `SOS’ at the pioneer’s office.
Eastman Kodak a renowned name in the photography segment, pioneers since incorporation in 18928 has filed for bankruptcy in U.S. Bankruptcy Court for the Southern District of New York in the early hours of Thursday morning. The ever-changing technological world has had its toll on this imaging giant. Well though the filing under Chapter 11 by Kodak did not come as a surprise, but was much regretted by the renowned. For months, bankruptcy rumors have dogged the venerable company, which was founded by George Eastman in 1888
The imaging company is expected to continue to try to auction off a lucrative portfolio of 1,100 patents that could be worth around $3 billion while in bankruptcy. The stocks plunged 35% at the start of trading. The New York Stock Exchange suspended trading within a few minutes after the opening bell. That is the benefit of filing under chapter-11.
{besps}slideshow/EastmanKodak{/besps}
Kodak's top creditor is the Bank of New York Mellon in its role as trustee for other bondholders, with claims of more than $650 million. Kodak has been struggling to evolve in today's digital world. The shift from film upended the company's business model, causing sales to shrink almost in half from 2005 to 2010 and profits to dry up completely. Amid its financial demise, the company’s stock has also suffered considerably. Shares tumbled almost 90% last year to penny stock status. The imaging company was delisted from the S&P 500 in December 2010, and was dropped from the Dow Jones industrial average in 2004. (With inputs from Internet) (AarKay)
