Our Escondido readers who are familiar with previous posts here may know that Eastman Kodak, once the premier business in all of photography, is currently going through bankruptcy. The one-time mega-company filed for Chapter 11 bankruptcy protection back in 2011, and will continue to go through the required steps as 2013 begins. And, according to a recent report, Eastman Kodak took another step recently which will hopefully put it one step closer to emerging from the Chapter 11 process.
Part of Eastman Kodak's bankruptcy strategy has been to sell off some of the company's patents in order to raise capital. One of the company's most valuable assets is its portfolio of digital imaging patents, which the recent report indicated that the Kodak is looking to sell for approximately $527 million. If the sale is completed, it could go a long ways toward helping Kodak successfully conclude the bankruptcy process.
The Chapter 11 process can be different for every company, but some things in particular are commonly seen. First, the company will usually submit a plan to reorganize the business, streamlining operations in an effort to reduce expenses and increase profits. Next, a plan usually needs to be reached with the company's creditors on how to pay off the business debt that has been accumulated. And all of this usually happens while the company remains in operation.
For Eastman Kodak, this most recent step is a big one, and it may be the turning point in the company's bankruptcy filing. That turning point can come at different times for different companies, but if the business leaders in charge stick to the bankruptcy plan resolutely success can be achieved.
Source: Buffalo Business First, "Kodak takes key step toward emerging from bankruptcy," Jan. 14, 2013