Posts Tagged ‘Eastman Kodak’

Bankrupt Kodak Cuts Retirement Benefits, The New Business Medicine For Expensive Promises

November 7, 2012

Larry Elliott spent 30 years working at Eastman Kodak Co., and he retired from the finance division in 1991, confident in the company’s promises of health insurance for life and a survivor income benefit that could help support his wife when he dies.

But 21 years later, Elliott is now 75, and Kodak filed for bankruptcy protection in January. As part of the company’s restructuring, U.S. Bankruptcy Judge Alan Gropper recently approved ending those two benefits as of Dec 31, 2012 for some 56,000 retirees. Pensions are not affected by this ruling.

The move, described by Kodak as necessary for its successful restructuring, took Elliott and other retirees by surprise.

Nevertheless, it was not unusual, says Greg Charleston, Atlanta-based senior managing director of the turnaround and restructuring firm Conway MacKenzie. “Bankruptcy allows companies to get out of some very expensive promises that were made many years ago,” he says.

Bankrupcty for what ails you..

 

Eye View Business Eastman Kodak To Declare Bankruptcy, Why Wait?

January 5, 2012

Eastman  Kodak Co. is preparing to seek bankruptcy protection in the coming weeks,  people familiar with the matter said, a move that would cap a stunning comedown  for a company that once ranked among America’s corporate titans.

The 131-year-old company is still making last-ditch efforts to sell off some  of its patent portfolio and could avoid Chapter 11 if it succeeds, one of the  people said. But the company has started making preparations for a filing in  case those efforts fail, including talking to banks about some $1 billion in  financing to keep it afloat during bankruptcy proceedings.

Former employees say the company was the Apple Inc. or Google  Inc. of its time. Robert Shanebrook, 64 years old, who started at the company in 1967 and was most  recently world-wide product manager for professional photographic film, recalls  young talent traipsing through Kodak’s sprawling corporate campus.”We had this self-imposed opinion of ourselves that we could do anything, that  we were undefeatable,”

Kodak’s founder, Mr. Eastman, took his life at the age of 77 in what is now a  museum celebrating the founder and Kodak’s impact on photography. His suicide  note read: “To my friends, my work is done. Why wait?”

Kodak’s work is done why wait..