The Chapter 11 filing makes Kodak one of the biggest corporate casualties of the digital age, after it failed to quickly embrace more modern technologies such as the digital camera - ironically, a product it invented. The bankruptcy may give Kodak buyers for some of its 1,110 digital patents, a major portion of its value. The bankruptcy would help Kodak maximize the value of its patents related to digital imaging, which Kodak said are used in virtually every modern digital camera, smartphone and tablet. Look around you. Nearly all kids these days have phones, and the majority out of that majority have smartphones. Kodak's market value sunk well below $200 million from $31 billion 15 years ago when its share price topped $94. According to papers filed with the U.S bankruptcy court in Manhattan, Kodak had about $5.1 billion of assets and $6.75 billion of liabilities at the end of September. Kodak also said that it had obtained a $950 million, 18 month credit line from Citigroup Inc. (a division of Citibank) so it can keep operating and avoid having to liquidate its assets, and that it expects to complete the bankruptcy process in 2013. Mark Zupan, the dean of the University of Rochester's business school, said that there was still too much value left for Kodak for them to force themselves to liquidate their assets, explicitly stating that the segments would be profitable enough to survive as a small leading company.
The Chapter 11 filing makes Kodak one of the biggest corporate casualties of the digital age, after it failed to quickly embrace more modern technologies such as the digital camera - ironically, a product it invented. The bankruptcy may give Kodak buyers for some of its 1,110 digital patents, a major portion of its value.
ReplyDeleteThe bankruptcy would help Kodak maximize the value of its patents related to digital imaging, which Kodak said are used in virtually every modern digital camera, smartphone and tablet. Look around you. Nearly all kids these days have phones, and the majority out of that majority have smartphones. Kodak's market value sunk well below $200 million from $31 billion 15 years ago when its share price topped $94. According to papers filed with the U.S bankruptcy court in Manhattan, Kodak had about $5.1 billion of assets and $6.75 billion of liabilities at the end of September. Kodak also said that it had obtained a $950 million, 18 month credit line from Citigroup Inc. (a division of Citibank) so it can keep operating and avoid having to liquidate its assets, and that it expects to complete the bankruptcy process in 2013.
Mark Zupan, the dean of the University of Rochester's business school, said that there was still too much value left for Kodak for them to force themselves to liquidate their assets, explicitly stating that the segments would be profitable enough to survive as a small leading company.