Kodak emerges from bankruptcy protection

Eastman Kodak Corporation, who filed for Chapter 11 bankruptcy in 2012 with an estimated $6.75 billion in debt due to high pension costs and their inability to move into emerging digital markets, has emerged from bankruptcy protection. According to reports, they have suffered a quarterly loss of $155 million after stripping off reorganization items and discontinued operations.

Now the company reports they have $839 million in cash and debt of $679 million as of Sept. 30. They have also “adopted fresh-start accounting and provided separate figures for the month, which was a loss of $18 million.”

What will Kodak do now?


Kodak, which was created by George Eastman, is now in the hands of Kodak chief executive Antonio Perez. Perez has stated that his vision for the company is a restructuring which allows the company to create a brand new future and eliminate costs from the old company structure.

Part of that dream will be helping Kodak differentiate themselves from other competitors as they move into the commercial products market, including high-speed digital printing technology and printing on flexible packaging for consumer goods.

The failure of Kodak should be a warning to all businesses. According to a recent Forbes report by Avi Dan, “Kodak had the nearsighted view that it was in the film business instead of the memories business.” Dan continues, “Kodak made a classic mistake: it didn’t ask the right question. It focused on selling more products, instead of the business that it was in, sharing memories.”

Because Kodak failed to understand their business they didn’t shift from analog film to digital processes quickly enough and they missed the digital market almost entirely. Hopefully this bankruptcy will help them get it right the second time.

Global Aviation Holdings files for record fourth bankruptcy


Global Aviation Holdings has filed a record fourth bankruptcy on Tuesday. The company, which provides commercial charter airlines to the United States military, has filed their fourth Chapter 11 since 2004. According to the company, much of their problems stem from government cutbacks.

According to Reuters, previous bankruptcies were filed in 2004 and 2006 in the Southern District of Indiana and last year in the Eastern District of New York. The company has not yet made a public statement about the most recent bankruptcy filing.

How common are repeat bankruptcy filers?


Experts note many companies who file Chapter 11 bankruptcy do end up filing a second time. In fact, estimates are as high as one-third of larger companies. What is interesting to note, however, is there are only about ten companies that have had to file Chapter 11 three times. Filing four times under our current bankruptcy code is unprecedented.

The biggest losers for each of Global Aviation’s previous bankruptcies were the unsecured creditors who generally lost almost all of what they were owed in the company’s restructuring plan. The exception was in 2006 when they were repaid an estimated 2.4 percent of their debts.


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Beth L. is a content writer for Better Bankruptcy. Good content and information is one of many methods we utilize to bring you the answers you need.