Letter to Suppliers of Non-U.S. Entities
Dear Valued Supplier to Kodak Non-U.S. Entities:
Today Kodak announced that it and its U.S. subsidiaries filed voluntary petitions for Chapter 11 business reorganization in the U.S. Bankruptcy Court for the Southern District of New York.
Kodak took this step to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve our legacy costs, and enable the Company to focus on our most valuable business lines.
Please note that Kodak's non-U.S. subsidiaries are not included in the filings and will continue to operate as usual. Another way to say this is that Kodak's reorganization does not affect vendors and suppliers to Kodak's non-U.S. subsidiaries.
As a result, our expectation is that today's action will not have any impact on commercial relationships with Kodak operations based outside of the U.S. Kodak's non-US entities will continue to pay all invoices on time, and meet all contractual obligations.
Chapter 11 does not mean that Kodak is going out of business. A U.S. Chapter 11 proceeding is different from bankruptcy in most other countries. Unlike those proceedings which are liquidations, U.S. Chapter 11 is a mechanism that generally focuses on the preservation and reorganization of ongoing operating companies, not the closing of \ businesses. The process will allow us to continue normal business operations while we restructure our debt, costs, and other obligations, and gives us much more flexibility to address these matters while preserving the fundamental value of our business and operations.
Additional information about the Kodak reorganization process, including Frequently Asked Questions for Suppliers, is available at www.kodaktransforms.com.
We are eager to move forward with our business transformation. The new Kodak that emerges from this process will move forward as a more competitive, sustainable enterprise, and build a future that will benefit Kodak's stakeholders, including our valued supply chain and channel partners.
We look forward to continuing our relationship with you and appreciate your continued support.