It's official: Kodak in Chapter 11

<p>It's no longer a matter of "considering" BK. Kodak stick a fork in it: <a href="http://www.marketwatch.com/story/kodak-files-for-chapter-11-bankruptcy-2012-01-19?siteid=rss">Click</a></p>

<p>It sucks.</p>

 

<p>They are hoping to "emerge a lean, world-class, digital imaging and materials science company", but in the meantime it wouldn't hurt to file some lawsuits:<br>

[<a href="http://www.pcr-online.biz/news/read/kodak-files-for-chapter-11-sues-samsung/027824">Link</a>] </p>

<p>http://blogs.wsj.com/deals/2012/01/19/kodak-bankruptcy-by-the-numbers/<br>

Apple, Research in Motion, and HTC are the three companies noted in the bankruptcy filing who are not paying royalties on Kodak's patents, and are apparently stalling the court process hoping Kodak is too distracted to do anything about it. The royalties received cratered last year.<br>

Of course, I wouldn't be surprised to see Apple buy the patent suite to put the squeeze on the Android phone market. They can afford it, and it's got to be cheaper now.<br>

It's curious -- a lot of the larger creditors are major customers, like movie companies, Wal-Mart, CVS, Staples, Target, etc. All listed as "trade debt". Perhaps they owe them product? Of course, the largest creditors are the Banks.<br>

Film is down to 26% of revenue. Since 2008 it has been the primary profit source, along with the patent portfolio. But it sounds like they may have been letting their film profits slide, not passing through the doubling to trebling of silver prices since 2008. (This may explain why Ilford's film is more expensive than the Kodak equivalents -- they are passing through the silver costs.)<br>

Negative cash flow is awful, $165 million a month. Getting all the patent royalties they are owed isn't enough to plug that hole.</p>

 

<p>"<em>They are hoping to "emerge a lean, world-class, digital imaging and materials science company</em>"<br>

If they get any leaner they might become non-existant.</p>

<p> Well I hope it all ends well. I do not care about printers myself but I do hope to be able to continue to shoot Kodak film. I guess we will see what happens. </p>

<p>I'd bet it will end well. Maybe not for pensioners or creditors, but it is a great opportunity to trip the fat, gather some direction, and move on. I've always believed Kodak has great technical vision, but the packaging and marketing could use some help.</p>