Many of our California readers may have been following along with previous posts here detailing the trials and tribulations that former American business powerhouse Eastman Kodak has been going through in recent years. Since filing for Chapter 11 bankruptcy protection near the end of 2011, the company has been conducting an all-out assault on making changes to its strained financial situation, and now it appears the efforts may result in an exit from bankruptcy in the near future.
Kodak has had to make some major changes in the way the company does business, but that is exactly what Chapter 11 can provide time for. According to a recent report, Kodak has dropped its involvement in many areas that most Americans previously associated the company with, including getting out of the digital photography sector as well as shuttering inkjet printer manufacturing.
Now, with all of the changes that have been made, there are two key hurdles to cross. First, the company will need to deal with a pension plan. But, the second step appears to be the most perilous. Kodak will have to attempt to get the company's creditors to agree to a proposed repayment plan. This can be a tricky part of any Chapter 11 bankruptcy filing, but as long as the creditors see a path forward approval could be one of the last steps in the bankruptcy process.
Eastman Kodak still has many other moves to make in this process, but it appears that smoother sailing could be ahead if these crucial next steps are successful. Many companies that go through the Chapter 11 bankruptcy process emerge almost as completely different companies than they were at the beginning, but that can be a good thing if it means a return to profitability.
Source: USA Today, "Hearings put Kodak on cusp of ending its bankruptcy," Matthew Daneman, June 20, 2013