Kodak files Chapter 11

January 20, 2012 – Eastman Kodak Company announced today 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.

The business reorganization is intended to bolster liquidity in the U.S. and abroad, monetize non-strategic intellectual property, fairly resolve legacy liabilities, and enable the Company to focus on its most valuable business lines. The Company has made pioneering investments in digital and materials deposition technologies in recent years, generating approximately 75% of its revenue from digital businesses in 2011.

Kodak has obtained a fully-committed, $950 million debtor-in-possession credit facility with an 18-month maturity from Citigroup to enhance liquidity and working capital. The credit facility is subject to Court approval and other conditions precedent. The Company believes that it has sufficient liquidity to operate its business during chapter 11, and to continue the flow of goods and services to its customers in the ordinary course.

Kodak expects to pay employee wages and benefits and continue customer programs. Subsidiaries outside of the U.S. are not subject to proceedings and will honor all obligations to suppliers, whenever incurred. Kodak and its U.S. subsidiaries will honor all post-petition obligations to suppliers in the ordinary course.

Paper vs Electronic

If you prefer to read from paper instead of an electronic screen, you’re not alone.  According to a recent survey commissioned by Two Sides, the fast-growing non-profit organization created to promote the responsible production, use and sustainability of print and paper, 70 percent of Americans, including 69 percent of 18- to 24-year-olds, say they prefer to read print and paper communications than reading off a screen.  Most of those surveyed also believe that paper records are more sustainable than electronic record storage (68 percent) and that paper is more pleasant to handle and touch than other media (67 percent).