There are many Americans who are likely following Eastman Kodak's continuing bankruptcy saga, including many in California. It can be such a strange thing to observe a company which for years was such a dominant powerhouse in one particular area of the economy to fall on tough times and be forced to adapt or close. Many adults throughout America can remember the times before digital cameras, when Kodak was the premier name in photography. However, as technology changed and Kodak failed to keep up, the company found itself in position to file for Chapter 11 bankruptcy in January.
Although the company is reportedly hoping to exit the Chapter 11 process in 2013, times are still tough as of now. Recent financial figures from the business show that the process of changing their core business focus is leading to substantial losses in revenue. Although the changes in the company format are costing millions of dollars, it may well be that this is money well spent.
A company filing for Chapter 11 bankruptcy protection gets a number of advantages by doing so. The filing is meant to give the business time to put together a plan to reorganize the company's structure, streamlining operations in an effort to return to profitability. The company will also seek to come to an agreement with creditors as well, submitting a plan to repay the company's debt over time. All of these efforts occur as the company remains open for business.
Although many may think that Eastman Kodak is in a dark place with their financial situation at this time, there are likely to be some who believe that the company will be successful in its efforts to remake the company brand. Only time will tell if this is the case, but the complicated steps of the Chapter 11 bankruptcy process continue to proceed for Kodak.
Source: Reuters, "Kodak posts larger loss amid bankruptcy costs," Oct. 30, 2012