Rochester, NY—Kodak highlighted its restructuring accomplishments to date in a motion it submitted to the Bankruptcy Court to extend its exclusive right to file a plan of reorganization until February 28, 2013.
Consistent with its emergence strategy that focuses on commercial, packaging and functional printing solutions, and enterprise services, starting in 2013 Kodak will focus its Consumer Inkjet business on the sale of ink to its installed base and wind down sales of consumer inkjet printers. Kodak expects this decision will significantly improve cash flow in the U.S. beginning in the first half of 2013.
In its motion, Kodak described the progress it has made toward reorganization goals since filing for Chapter 11 on January 19, 2012. Kodak’s case complex, involving $5 billion in assets, global operations, thousands of contracts and leases, thousands of potential creditors and ongoing asset sales. The company’s progress includes the stabilization of its business, the development of its emergence plan, operating improvements, the expansion of customer and vendor relationships, and cost reductions.
“Kodak is making good progress toward emergence from Chapter 11, taking significant actions to reorganize our core ongoing businesses, reduce costs, sell assets and streamline our organizational structure,” said Antonio M. Perez, chairman and chief executive officer. “Steps such as the sale of Personalized Imaging and Document Imaging, and the Consumer Inkjet decision, will substantially advance the transformation of our business to focus on commercial, packaging & functional printing solutions and enterprise services. As we complete the other key objectives of our restructuring in the weeks ahead, we will be well positioned to emerge successfully in 2013.”
Perez added that Kodak remains committed to its “significant installed base of consumer inkjet printer customers, who recognize the value proposition of affordable ink, high-quality output because of Kodak’s unique pigment-based inks and advanced features, including cloud printing. The company will provide its customers and retail partners the same level of service and support they have come to expect from Kodak.” kodak.com
