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Home >> Kodak Asks Court For More Time
Rochester, N.Y. — Eastman Kodak has asked a federal bankruptcy court to extend the company’s exclusive right to file a reorganization plan until Feb. 28, 2013, with the goal of emerging from Chapter 11 in the first half of 2013 .
The company also revealed that as part of its plans to return to profitability, it will “wind down sales of consumer inkjet printers” starting next year to focus on the sale of ink to the installed base of its inkjet printer users. “Kodak expects that this decision will significantly improve cash flow in the U.S. beginning in the first half of 2013,” the company said.
Kodak previously announced plans to exit or sell unprofitable and declining businesses, including the digital camera business and online photo services business.
In its motion, Kodak cited “the substantial progress” it has made since filing for Chapter 11 on Jan. 19, 2012. Specifically, Kodak cited “the successful stabilization of its business, the development of its emergence plan, significant operating improvements, the expansion of customer and vendor relationships, and substantial cost reductions.”
Kodak previously announced plans to focus on commercial, packaging and functional printing solutions and enterprise services as well as plans to sell its personalized imaging and document imaging businesses.
The company also cited restructuring that includes the reduction of Kodak’s global workforce by more than 2,700 positions so far and expectations of a reduction of at least 1,200 more employees for a 23 percent headcount reduction. The reduction will save more than $340 million per year and yield a workforce of about 13,100 employees, the company said.