Kodak Takes Next Steps Toward Successful Emergence
Eastman Kodak Company today outlined its next steps toward a successful emergence from Chapter 11 reorganization as a company focused on commercial, packaging and functional printing solutions and enterprise services. Accordingly, the company has decided to initiate sales processes for its market-leading Personalized Imaging and Document Imaging businesses.
Kodak believes that the sale of these assets, as well as continued cost-cutting initiatives, curtailment of its legacy liabilities, and the monetization of the company’s digital imaging patent portfolio, will be significant milestones toward completing the company’s reorganization and emergence from Chapter 11 during 2013.
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Frequently Asked Questions
1. Will Kodak succeed?
Yes. We are taking the necessary steps to successfully emerge as a profitable, sustainable company. We are reshaping Kodak and continue to rebalance our company toward commercial, packaging and functional printing – in which we have the broadest portfolio of solutions – and enterprise services. These businesses have substantial long-term growth prospects worldwide and are core to the future of Kodak. Our competitive advantages in materials science and deposition technologies, as well as our know-how in digital imaging, will enable us to capitalize on those opportunities and extend our leadership in key growth markets.
2. What else do you have to do to successfully emerge? When can we expect that to happen?
In addition to the commercial, packaging and functional printing and enterprise services businesses, we will also continue to own and operate our Consumer Inkjet, Entertainment Imaging, Commercial Film, and Specialty Chemicals businesses given our strengths in these markets.
Like any company, to emerge from Chapter 11, Kodak must create a Plan of Reorganization that demonstrates the value of the company’s assets and business and how the company intends to return that value to creditors.
3. How did you select the businesses that are being offered for sale?
The sale of these businesses, as well as continued cost-cutting initiatives, curtailment of our legacy liabilities, and the monetization of our digital imaging patent portfolio, will be significant milestones toward completing the company’s reorganization and emergence from Chapter 11.
Kodak will now look to finalize our Plan of Reorganization, reach agreement with our creditors on it, and file the plan with the Court to emerge as a profitable, sustainable company during 2013.
Personalized Imaging and Document Imaging are valuable businesses and have strong fundamentals, market leading positions based on superior products and service, and strong customer relationships. As a result, we expect buyers to see the value in these assets.
4. Will products continue to be available throughout the sale process?
Yes. Customers can continue to count on us for products, services and support throughout the sale process and transition to new ownership. We are committed to meeting customer needs.
5. How can you assure customers that their interests will be protected?
As we move forward with the potential transition of these businesses to new ownership, we will ensure that our customers continue to enjoy the same great products, services and support that they have come to expect from Kodak. We will also ensure that the potential buyers share our commitment to serving customers. Kodak has successfully sold businesses in the past with a seamless transition for customers.
6. How can you sell the bulk of Kodak’s consumer business? Isn’t that your heritage and what largely defines your brand?
Indeed our company was formed more than 130 years ago around consumer photography, and it has been the core of our business for most of those years. It is also important to note, however, that our brand is strong in commercial markets. We have worked over the past several years to grow our presence in the commercial area, which now represents more than two-thirds of our sales.
7. Will you be able to keep investing in your remaining businesses?
Our financial plans and projections provide for continued investment in our key businesses. As we’ve noted, we have greatly reduced the amount of cash used for operating activities. We are making smart investments and partnering with others to succeed.