Kodak, the one-time king of the photography industry, has won court approval for a plan to exit bankruptcy. The company will move away from making and selling cameras towards being a business-focused commercial printing company.
Kodak’s demise began in the late 1990s when it failed to transition in time from film to digital, despite having invented the core technology used in current digital cameras.
The company filed for Chapter 11 bankruptcy and ceased making digital cameras in 2012.
The company also sold many of its patents for US$525m to companies that include Google, Facebook, Amazon, Microsoft, Samsung, Adobe and HTC.
The bankruptcy exit plan cuts about US$4.1bn of debt. Secured creditors will be paid in full under the plan while shareholders won’t receive a thing.
Unsecured creditors owed US$2.2bn will be paid up to 5 cents to the dollar.
When the company began the bankruptcy proceedings, it had 17,000 employees. However, once it exits bankruptcy proceedings it will have 8,500 employees.
Kodak vintage camera image via Shutterstock