Kodak: Chapter 11 Business Reorganization

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.

“Kodak is taking a significant step toward enabling our enterprise to complete its transformation,” said Antonio M. Perez, Chairman and Chief Executive Officer. “At the same time as we have created our digital business, we have also already effectively exited certain traditional operations, closing 13 manufacturing plants and 130 processing labs, and reducing our workforce by 47,000 since 2003. Now we must complete the transformation by further addressing our cost structure and effectively monetizing non-core IP assets. We look forward to working with our stakeholders to emerge a lean, world-class, digital imaging and materials science company.”

“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,” Mr. Perez continued. “Our goal is to maximize value for stakeholders, including our employees, retirees, creditors, and pension trustees. We are also committed to working with our valued customers.

“Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses.”

Mr. Perez concluded, “The Board of Directors, the senior management team and I would like to underscore our appreciation for the hard work and loyalty of our employees. Kodak exemplifies a culture of collaboration and innovation. Our employees embody that culture and are essential to our future success.”

Kodak has taken this step after preliminary discussions with key constituencies and intends to work toward a consensual reorganization in the best interests of its stakeholders. Kodak expects to complete its U.S.-based restructuring during 2013.

The Company and its Board of Directors are being advised by Lazard, FTI Consulting Inc. and Sullivan & Cromwell LLP. In addition, Dominic DiNapoli, Vice Chairman of FTI Consulting, will serve as Chief Restructuring Officer to support the management team as to restructuring matters during the chapter 11 case.

More information about Kodak’s Chapter 11 filing is available on the Internet at: www.kodaktransforms.com. 

Kodak will be filing monthly operating reports with the Bankruptcy Court and also plans to post these monthly operating reports on the Investor Relations section of Kodak.com. The Company will continue to file quarterly and annual reports with the Securities and Exchange Commission, which will also be available in the Investor Relations section of Kodak.com.

This document includes “forward–looking statements” as that term is defined under the Private Securities Litigation Reform Act of 1995.

(c)2012 Eastman Kodak Company

Kentmere Photographic Acquired by Harman

HARMAN technology Limited, the company behind ILFORD PHOTO and HARMAN PHOTO, has announced the addition of KENTMERE PHOTOGRAPHIC Limited to its business. The move, which comes following a period of extensive negotiations.

Following the buy-out, Harman is keen to stress that the Kentmere brand will remain relatively unchanged. It will continue to offer the same resin coated and fibre based monochrome papers and inkjet products, including Opaljet, whilst employing the same marketing approach. On the Harman's press release we can read : "In fact, the key difference will be that the Kentmere brand will now enjoy the benefits of being backed by a larger organisation. In particular, the brand will have access to the additional expertise and investment, as well as the established export channels (to markets such as the United States), to take its success further". Speaking of the deal, Harman’s Chairman and Managing Director, Phil Harris said: “Harman has an acquisitive growth policy and is keen to be seen as the natural home for high-quality imaging products. We have bought Kentmere recognising it is a strong brand with a massive amount of potential and knowing we can add what’s required to help bring that potential to fruition. Our size, established infrastructure and ability to invest into the Kentmere brand, will help to open new doors and opportunities for its products.” “At the same time, Kentmere will also add an extra dimension to our business. It will extend our product portfolio and allows us to target an even wider range of the market.”

APS Konica JX400 Color Print Film

Advanced Photo System Konica JX400 Color Print Film 

Konica Corporation announces the introduction of its new Konica JX400 Color Print Film. Fulfilling all the standard specifications of the new Advanced Photo System, the new film will be available with 15, 25, and 40 exposures as of April 22, 1996.

The new film will be ISO 400, a speed which has established a firm position for itself in the conventional 135 film market based on its all-around convenience for taking pictures. Although the frame size of the new film, at 16.7mm x 30.2mm is approximately 58 percent of the area of conventional 135mm film, resultant print quality is as good as conventional prints.

Konica JX400 Color Print Film embraces Konica's latest film technologies and satisfies the attractive features of the new Advanced Photo System.*

- The new, smaller film cartridge enables the development of even smaller-sized compact cameras

- The cartridge fits into the camera only one way; the right way.

- The new film allows you to select from among three print formats - C for 2:3 format, H for 9:16 format and P for 1:3 format - each time you shoot.

- The magnetic layer on the new film can record picture-taking information and some of the information such as messages and date can be printed on the back of each print.

- Advanced Photo System prints are returned with the film in its original cartridge along with a convenient positive image index print.

- The film, returned in its original cartridge, is easy to handle and file.

The new film comes in a sophisticated eye-catching purple and black package designed to express the film's high grade and quality. Inside, a barrier bag rather than a plastic canister, is used to minimize packaging size.

Konica JX400 Color Print Film is but one of the full range of Advanced Photo System products offered by Konica. Such products as single-use cameras, compact cameras, photofinishing equipment and related materials are also offered in Advanced Photo System standards to satisfy the diversified requirements of various customers for the joy of photography.

*The features of the Advanced Photo System vary with the sophistication of cameras and photofinishing services.

Konica Corporation, Tokyo - February 13, 1996