The death of Kodak

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Matt
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Kodak Teeters on the Brink
Eastman Kodak Co. is preparing to seek bankruptcy protection in the coming weeks, people familiar with the matter said, a move that would cap a stunning comedown for a company that once ranked among America's corporate titans.
The 131-year-old company is still making last-ditch efforts to sell off some of its patent portfolio and could avoid Chapter 11 if it succeeds, one of the people said. But the company has started making preparations for a filing in case those efforts fail, including talking to banks about some $1 billion in financing to keep it afloat during bankruptcy proceedings, the people said.

A Kodak spokesman said the company "does not comment on market rumor or speculation."
A filing could come as soon as this month or early February, one of the people familiar with the matter said. Kodak would continue to pay its bills and operate normally while under bankruptcy protection, the people said. But the company's focus would then be the sale of some 1,100 patents through a court-supervised auction, the people said.

That Kodak is even contemplating a bankruptcy filing represents a final reversal of fortune for a company that once dominated its industry, drawing engineering talent from around the country to its Rochester, N.Y., headquarters and plowing money into research that produced thousands of breakthroughs in imaging and other technologies.
The company, for instance, invented the digital camera—in 1975—but never managed to capitalize on the new technology.

Casting about for alternatives to its lucrative but shrinking film business, Kodak toyed with chemicals, bathroom cleaners and medical-testing devices in the 1980s and 1990s, before deciding to focus on consumer and commercial printers in the past half-decade under Chief Executive Antonio Perez.

None of the new pursuits generated the cash needed to fund the change in course and cover the company's big obligations to its retirees. A Chapter 11 filing could help Kodak shed some of those obligations, but the viability of the company's printer strategy has yet to be demonstrated, raising questions about the fate of the company's 19,000 employees
Read more: http://online.wsj.com/article/SB1000142 ... z1ibHpnWDP
gardengirl13
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So sad. I didn't know they invented the digital camera? Can't see how they couldn't capitalize more on that unless they just thought it would never catch on, or hurt their film sales. ??

I hate to say it but the reason i went digital in 2006 is because it was just getting to hard to develop film. No one locally did it unless you went to the CVS one hour places and they do a horrible job, or mail it in. I miss film. I still have a few rolls laying around and mailers to send them in, but I just never get around to using them.
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Matt
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it's disappointing to me, primarily because of the local workforce loss. I have a Kodak printer and I love it so far, but it seems that's going to be Kodak's focus int he consumer market thus far. It looks to be a good move. My dream would be for Olympus to buy Kodak and begin using Kodak sensors again.
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I spent 3 summers working at Kodak during college. And had a dad who spent his entire career there. Some of the things mentioned in that article brought back the feeling of pride, dedication and passion we had as employees in the late 70s. It was also some quality dad and daughter time as we commuted together on the 2 hour round trip jaunt each day. It's now sinking in that those memories will last longer than Kodak. :cry:
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Matt
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Former Kodak Spokesman Speaks Again
Rochester, N.Y. - Former Kodak spokesman Paul Allen retired from the company ten years ago, and says with considerable pride that he’s been putting much greater focus on his grandchildren than on the company he served for 32 years.

But recent headlines about Kodak running short on cash, a possible selling of patents, and even reports of a possible bankruptcy filing have been hard for the former insider to ignore.

He spoke with me about the company’s troubles and what he hopes will happen next. He also offered his own analysis and opinions about what made the company great in the first place, and some of the decisions that sparked its decline starting in the 1980s.

Allen believes the best course for Kodak would be to remove the so-called poison pill, a provision designed to block any hostile takeover.

He says a friendly takeover would be preferable to a bankruptcy filing because he believes it would allow the company to get top dollar for its assets, and preserve the brand. Allen fears that current management could be trying to protect its own severance packages if it files for bankruptcy protection.

Kodak needs to find a friendly buyer and lift the poison pill they have in place” Allen says. “A friendly buyer could provide the resources they need to continue those businesses that are viable going forward, and to get top dollar for the company's technology and intellectual property.” Allen says “A bankruptcy cannot provide any of these resources. It can only provide protection from their creditors and a nice severance package for executives.”
Rest of the story here:
http://www.13wham.com/news/local/story/ ... JBetg.cspx
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Matt
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Kodak is finally beginning to protect their patents

Kodak’s New Apple, HTC Suits May Lift Patents
Eastman Kodak Co. (EK), seeking to sell or license a portfolio of more than 1,100 patents, sued Apple Inc. and HTC Corp. (2498) in an expansion of a legal strategy that may help boost the value of its inventions to fund a turnaround.
Two infringement lawsuits filed yesterday in federal court in Rochester, New York, accuse the smartphone makers of using without permission Kodak technology for image transmission, including a way for users to share images directly from cameras. Kodak also claims HTC is infringing an additional patent for a preview feature, which is at the center of a U.S. International Trade Commission case against Apple and Research In Motion Ltd. (RIM)
“They’re trying to generate value for their patent portfolio,” said Ron Epstein, chief executive officer of patent brokerage Epicenter IP Group LLC in Redwood City, California.
More here...
http://www.bloomberg.com/news/2012-01-1 ... tents.html
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Kodak declares bankruptcy today.

The issue not spoken here or elsewhere is the way we all treated Kodak. Yes they let engineers not mangers run a company for too long. Yes they could not or would not see the value of many of their brilliant squandered inventions. BUT. Anyone who could prosper or manipulate Kodak locally did just that. The strangling government regulations. The D& C was for years full of how terrible Kodak was. EPA, Town Assessment scandal, Union pressure to provide benefits that choked the company. Kodak gave and gave. Remember the year end bonuses? Assembly line people would show up with new fancy cars in Spring and how many of us know people who retired at age 50 with incredible pensions? All gone! Gone!

It is time to stop hating corporations. 70,000 employees to 17,000. 31 billion dollars in value to $150 million. Reminds me of the story about the 10 guys who would go out to breakfast each morning and split the bill ten ways. But one of the guys was very wealthy, so they voted (democracy) to have him pay half the bill. He does. After a while they decided he had so much wealth he could and should pay the whole bill, and they voted that he should. Of course then he did not show up for breakfast anymore, and the nine others were dumbfounded.

Kodak was it's own undoing, but we should look at ourselves, because we are AS MUCH to blame. Is Xerox next? Why is Boeing trying to move to South Carolina? Is the Canadian pipeline really and environmental nightmare? The oil is IN the pipe. The EPA regulates the crap out of refining here. You could strongly argue that refining here is 10X (or 100X?) better for the environment than refining in Iran and buying from them. In SanFran they claim that a 1.7 mile road extension will bring 43,000 jobs and we are all behind it, but today the estimate of the 22,000 expected jobs for 1,700 mile pipeline is in question. Weird times!!!!!
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Matt
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Kodak files Chapter 11 bankruptcy
Eastman Kodak Co., running short of cash and unable to sell 1,100 digital imaging patents that could have rescued it, filed today for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code.

The iconic Rochester company, whose history dates to the late 19th century and the technical and marketing genius of founder George Eastman, has been besieged for the past three months by rumors that it would make a bankruptcy filing. Those rumors had intensified in the past two weeks.

"After considering the advantages of Chapter 11 at this time, the board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak," CEO Antonio M. Perez said in announcing the decision.

The filing listed assets of $5.1 billion and debts of $6.75 billion.
more here:
http://www.democratandchronicle.com/art ... bankruptcy
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