Kodak to consider filing for bankruptcy

[Graham Mitchell]

Eastman Kodak Co. (EK), the unprofitable 131-year-old camera maker, is weighing options including a bankruptcy filing because of concerns raised by possible bidders for its patent portfolio, said three people with direct knowledge of the process. The shares plunged. Some potential buyers of the patents are reluctant to proceed with bids because a purchase may amount to a so-called fraudulent transfer if Kodak becomes insolvent, said the people, who asked not to be named because the talks are private. A number of suitors, such as Google Inc. (GOOG), have signed confidentiality agreements to examine the assets, said these people. If a sale were judged a fraudulent transfer, creditors could later sue for more money, said one of the people. A bankruptcy filing may help clear the way for the patent sale, said the people. The sale could fetch about $3 billion, according to estimates from MDB Capital Group.

Source: http://www.bloomberg.com/news/2011-09-30/kodak-said-to-weigh-bankruptcy-filing.html

Not good at all! I wonder where that would leave its semiconductor division? Lucky for us Dalsa still seems to be in good shape.

[theguywitha645d]

Perhaps their 8x10 films sales have not been doing well...

Many companies go through bankruptcy fillings without going out of business. This is so they can restructure. I would assume their digital division would be a safer bet than their film divisions as far as sticking around.

[Wayne Fox]

Yes, I believe this isn't a case of shutting (Chapter 13), but is a Chapter 11 (reorganizational bankruptcy protection from creditors).  sounds like there are some issues regarding the sale of some of their patent portfolio, and the bankruptcy may protect their ability to maximize the sale of those assets (could be just lets them have more control of what the cash does rather than having to just hand it over to creditors).  A 3 billion cash infusion certainly would be helpful to Kodak.  Kodak has several profitable divisions, but others are sucking money out of those divisions. they face challenges similar to many large business as their market and business model contracts ... too much corporate overhead, not enough direction, and an inability to penetrate or invent new markets.

[revaaron]

the people running kodak over the past decade should be lead out of the company in handcuffs.  They have spent about a decade killing off, selling off, and destroying this company. They entire time they have just been floundering, switching back and forth between options, and selling their names to bargain basement items.

Kodak was absolutely posed to lead in the modern camera world... and they failed. My Kodak SLR/n is still a winner over almost any camera and offers colors and features that even the D3 can't do and it's over 7 years old. after that, fail. Then they cancel kodakchrome... Rest In Piece.

[revaaron]

the sale of some of their patent portfolio

that is all they do no. f them.

[BernardLanguillier]

Kodak was absolutely posed to lead in the modern camera world... and they failed. My Kodak SLR/n is still a winner over almost any camera and offers colors and features that even the D3 can't do and it's over 7 years old. after that, fail. Then they cancel kodakchrome... Rest In Piece.

They were a using a sensor by a Belgian start up...

Cheers,
Bernard

[Peter Devos]

Nothing wrong with that Belgian company. I just happen to know one of the designers of the pro Slr sensors.... Even at that time, when they were designing the camera, Kodak still did not believe that digital would become the future. They still believed digital was just an extra next to film. They were so cheap that when "the Belgians" proposed alternations to the Chip design that would outperform every existing camera but would cost an extra bucket of Euro's they refused and just went with the existing design at that moment. I have had several 14n and pro slr-n kamera's and they were great. No other camera has a larger dynamic range that the original 14n..... but it was not to easy to obtain :-)

[fotometria gr]

They were a using a sensor by a Belgian start up...

Cheers,
Bernard

I believe that at the end that Belgian company (Fillfactory) was bought by another company (Cypress was the name) and that Kodak ended up owning both. Four years ago the previous owners of Fillfactory, formed a new company called CMOSIS. Its strange that Kodak was buying all those sensor constructors (they used to own Dalsa isn't it?) and yet they did not introduce nothing new in the imaging sensor market than the original 9 & 6.8μm sensors, they even ceased the production of the 9μm a few years ago, thus "killing" 16x multishot capability. Cheers, Theodoros www.fotometria.gr
P.S. Fillfactory and CMOSIS only were into the Cmos sensors....

[ErikKaffehr]

Hi,

You know, incompetence is not a crime, and it is really up to the shareholders to assert that the company has a competent management.

Handcuffs? No! Great pity? Yes!

Best regards
Erik

the people running kodak over the past decade should be lead out of the company in handcuffs.  They have spent about a decade killing off, selling off, and destroying this company. They entire time they have just been floundering, switching back and forth between options, and selling their names to bargain basement items.

Kodak was absolutely posed to lead in the modern camera world... and they failed. My Kodak SLR/n is still a winner over almost any camera and offers colors and features that even the D3 can't do and it's over 7 years old. after that, fail. Then they cancel kodakchrome... Rest In Piece.

[design_freak]

the people running kodak over the past decade should be lead out of the company in handcuffs.  They have spent about a decade killing off, selling off, and destroying this company. They entire time they have just been floundering, switching back and forth between options, and selling their names to bargain basement items.

Of course it's too bad, you're right. Scary is something else, the same people are greeted in other companies with open arms ... Owners of small businesses believe that they have something special, and this is just ticking time bomb. After all, these people do not change their habits. And they will continue their work of destruction.

Best regards,
DF

[BernardLanguillier]

I have had several 14n and pro slr-n kamera's and they were great. No other camera has a larger dynamic range that the original 14n..... but it was not to easy to obtain :-)

Yep, I used to own a SLR-N and there were pretty nice things about it, starting with ISO 6 mode.

It is pretty puzzling how Kodak could get in this situation considering the huge pile of cash they were sitting on top of.

Cheers,
Bernard

[jduncan]

Hi,

You know, incompetence is not a crime, and it is really up to the shareholders to assert that the company has a competent management.

Handcuffs? No! Great pity? Yes!

Best regards
Erik

I could not agree more. But, and this is a big But, we should have to examine the bonus and salaries they got during all this going no where days. If it's abusive, and don't reflects Kodak performance, then by all means have them arrested.

Best regards,

James

[feppe]

I could not agree more. But, and this is a big But, we should have to examine the bonus and salaries they got during all this going no where days. If it's abusive, and don't reflects Kodak performance, then by all means have them arrested.

Why would the executives need arresting since it's the board of directors who determine their pay?

Besides, it's up to the board of directors and shareholders to ensure that the executive team is competent, and that their actions are good for the company, not for the courts - except for clearly criminal instances, like the Madoff case.

[BernardLanguillier]

Besides, it's up to the board of directors and shareholders to ensure that the executive team is competent, and that their actions are good for the company.

As the HP example has shown clearly... this ends up boiling down to the (in)competence of the board and therefore of the key shareholders. They are always the ones making or breaking a company.

Cheers,
Bernard

[fotometria gr]

As the HP example has shown clearly... this ends up boiling down to the (in)competence of the board and therefore of the key shareholders. They are always the ones making or breaking a company.

Cheers,
Bernard

+1,  .....for more than 20 years in THIS company.

[jeremypayne]

Why would the executives need arresting since it's the board of directors who determine their pay?

Besides, it's up to the board of directors and shareholders to ensure that the executive team is competent, and that their actions are good for the company, not for the courts - except for clearly criminal instances, like the Madoff case.

+1

... for the record ... EK officers have not been paid bonuses since 2006.

[theguywitha645d]

I think someone needs to point out, Kodak has not declared bankruptcy--that is simply speculation on the part of the author.

[feppe]

I think someone needs to point out, Kodak has not declared bankruptcy--that is simply speculation on the part of the author.

That's clearly stated not only in the OP quote, but also in the title of the thread itself...

[theguywitha645d]

That's clearly stated not only in the OP quote, but also in the title of the thread itself...

You would think that would be enough, but many seem to be posting as if Kodak is definitely in or going into bankruptcy. There actually may not be a problem...

[feppe]

You would think that would be enough, but many seem to be posting as if Kodak is definitely in or going into bankruptcy. There actually may not be a problem...

Fair enough. Although saying there's no problem at all is ignoring the abysmal financials of the company.