Business as Usual

By now most customers will have heard that Eastman Kodak has filed for Chapter 11 Bankruptcy Protection in the USA. We want to explain to customers that, despite emotive media reports, this does not mean the company ceases to exist - Kodak continues to trade as normal, the only difference being that much of their liabilities, they are now protected from.

In our view this is a good move for Kodak because:

1. It means they can re-organise the company without the threat of the liabilities that have hung over the business in recent years;

2. They can re-finance the company. By making the move into bankruptcy protection they have been able to secure $950m of funding from Citibank

3. For a number of years it has seemed top management in the company have been obsessed with Wall Street and the share price of the company. In our opinion this has been a hinderance to the effective management of the business. Now the company is de-listed from the NYSE, they don't have to concern themselves with Wall Street and can take decisions freely.

4. It is expected the company will remain in Chapter 11 for around 12 months, at the end of which a new Kodak will emerge.

with thanks to AGPhotographic for the words